unit 7 - payment. What is the amount of the cash discount...

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Grade Details 1. Question: Under the perpetual inventory system, all purchases of merchandise are debited to the account entitled Your Answer: Merchandise Inventory CORRECT Cost of Merchandise Sold Cost of Merchandise Available for Sale Purchases Points Received: 2 of 2 2. Question: Merchandise with an invoice price of $5,000 is purchased on September 2 subject to terms of 2/10, n/30, and FOB destination. Freight costs paid by the seller totaled $200. What is the cost of the merchandise if paid on September 12, assuming the discount is taken? Your Answer: Points Received: 2 of 2 3. Question: When purchases of merchandise are made for cash, the transaction may be recorded with the following entry
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Your Answer: Points Received: 2 of 2 4. Question: Merchandise subject to terms 1/10, n/30, FOB shipping point, is sold on account to a customer for $25,000. The seller paid freight costs of $2,000 and issued a credit memo for $10,000 prior to
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Unformatted text preview: payment. What is the amount of the cash discount Your Answer: Points Received: 0 of 2 5. Question: Using a perpetual inventory system, the entry to record the return from a customer of merchandise sold on account includes a Your Answer: Points Received: 2 of 2 6. Question: Where are selling and administrative expenses found on the multi-step income statement? Your Answer: Points Received: 2 of 2 7. Question: Which account is not classified as a selling expense? Your Answer: Points Received: 0 of 2 8. Question: Merchandise inventory is classified on the balance sheet as a Your Answer: Points Received: 2 of 2 9. Question: Expenses that are incurred directly or entirely in connection with the sale of merchandise are classified as Your Answer: Points Received: 0 of 2 10. Question: Net income plus operating expenses is equal to Your Answer: Points Received: 2 of 2...
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unit 7 - payment. What is the amount of the cash discount...

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