ch5a[1] - 1. A retailer purchases merchandise with a...

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Unformatted text preview: 1. A retailer purchases merchandise with a catalog list price of $15,000. The retailer receives a 15% trade discount and credit terms of 2/10, n/30. How much cash will be needed to pay this invoice within the discount period? 1. $12,495 Score: 0/1 2. Under the perpetual inventory system, the cost of merchandise sold is recorded when sales are made. Score: 1/1 3. The buyer will include the sales tax as part of the cost of merchandise purchased. Score: 1/1 4. Purchased goods in transit should be included in the ending inventory of the buyer if the goods were shipped FOB shipping point. Score: 1/1 5. When goods are shipped FOB destination and the seller pays the freight charges, the buyer Score: 0/1 6. If the perpetual inventory system is used, an account entitled Cost of Merchandise Sold is included in the general ledger. Score: 1/1 7. Where are selling and administrative expenses found on the multi-step income statement? Score: 0/1 8. Income that cannot be associated definitely with operations, such as a gain from the sale of a fixed asset, is listed as Other Income on the multiple-step income statement. Score: 1/1 9. Use the following information to answer questions 65-70. 1. 2. 3. 4. Based on the above information, what would be the cash payment if the company decides to pay the invoice on September 30, 2009? Score: 0/1 10. Using a perpetual inventory system, the entry to record the sale of merchandise on account includes a 11. Use the following information to answer questions 65-70. 1. 2. 3. 4. Based on the above information, what would be recorded as net purchases amount after all of the transactions have been recorded? Score: 0/1 12. The service fee that credit card companies charge retailers varies and is the primary reason why some businesses do not accept all credit cards. Score: 0/1 13. Discounts taken by the buyer for early payment of an invoice are credited to Cash Discounts by the buyer. Score: 0/1 14. The proper journal entry to record the receipt of inventory purchased on account in a periodic inventory system would be: Score: 1/1 15. Use the following information to answer questions 65-70. 1. 2. 3. 4. Based on the above information, what would the journal entry for September 10, 2009 include? Score: 1/1 16....
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This note was uploaded on 11/12/2010 for the course ACCT 48638 taught by Professor Sterns during the Fall '10 term at Riverside Community College.

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ch5a[1] - 1. A retailer purchases merchandise with a...

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