ACC 502 Week 3 Quiz.docx

# ACC 502 Week 3 Quiz.docx - Sales revenue of a merchandiser...

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Sales revenue of a merchandiser amounted to \$20,000, sales returns and allowances amounted to \$2,500, and sales discounts of \$700. The merchandiser uses a perpetual inventory system. The first entry in the closing process would include: a debit to Income Summary for \$2,500. a debit to Income Summary for \$19,300. a credit to Income Summary for \$17,500. a credit to Income Summary for \$20,000. On November 1, 2015, Wrenns Martch sold merchandise with a cost of \$5,000 for \$10,000, FOB destination, with payment terms of 3/10, n/40, Wrenns paid transportation costs of \$100. Of these, merchandise sold for \$3,000 (with a cost of \$1,500) was returned on November 6. The company received the payment for the balance amount on November 10, 2015. Calculate the Net sales revenue. \$4,790 \$7,000 \$6,790 \$7,790 Sandra Company had 200 units of inventory on hand at the end of the year. These were recorded at a cost of \$12 each using the last-in, first-out (LIFO)

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method. The current replacement cost is \$10 per unit. The selling price charged by Sandra Company for each finished product is \$15. In order to record the
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• Revenue, Generally Accepted Accounting Principles, Goods Sold, Sales revenue of a merchandiser

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