Question 1The merchandise inventory ______is the ratio of cost of goods sold to average merchandise inventory.Select one:a. Sales discountb. Turnoverc. Merchandise Inventoryd. Cost of goods sold or cost of salesQuestion 2Credit memo is the document the issuance of which requires a debit toSelect one:Question 3What journal will you use to record the following transaction:Purchases of merchandise on account.Select one:Question 4
Following are selected purchase transactions of Mr. Cruz, a merchandiser, during April of the current year:April 8 Purchased merchandise from ABC Textile Corporation worth P 100,000, FOB Destination. Freight reported is P 15,000. Terms of payment: 2/10, n/30.
April 10 Returned defective merchandise purchased on the 8th, P 10,000.April 17 Paid ABC Textile Corporation.April 20 Purchased merchandise worth P 50,000 from RST Trading. Cebu City. Transportation- in is P 5,000. Terms: FOB shipping point; Terms of payment: n/30. The shipment arrived at the Port of Manila, AApril 25 Merchandise purchased from XYZ Clothing Co., P 80,000, FOB shipping point. Freight charges, P 6,500, Terms of payment: n/30. Shipment arrived at the Port of Manila on May 2.The net purchases to be reported on April 30 isSelect one:Question 5The owner of a merchandising business is calledSelect one:a. Merchandiserb. Buyer and/or Sellerc. All of thesed. Trader