AC201Quiz4CWA - Name Date AC201 Quiz#4-Version C Multiple...

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Unformatted text preview: Name: __________________________ Date: _____________ AC201 Quiz #4-Version C Multiple Choice Questions ( 10 points each ) 1. Costs included in the Merchandise Inventory account can include: A) Invoice price minus any discount. B) Freight-in. C) Storage. D) Insurance. E) All of the above. 2. The inventory turnover ratio is calculated as: A) Cost of goods sold divided by average merchandise inventory. B) Sales divided by cost of goods sold. C) Ending inventory divided by cost of goods sold. D) Cost of goods sold divided by ending inventory. E) Cost of goods sold divided by ending inventory times 365. 3. Source documents: A) Are input devices. B) Provide the basic information processed by an accounting system. C) Cannot be electronic files. D) Store processed information for future use. E) All of the above. Page 1 4. A subsidiary ledger that contains a separate account for each supplier (creditor) to the company is a(n): A) Controlling account. B) Accounts receivable ledger. C) Accounts payable ledger. D) General ledger. E) Special journal. Problem ( 60 points ) The Sun Company completed the following sales and cash receipts transactions during the first week of December. The Sun Company uses the periodic inventory system. D ec. 1. D ec. 1 D ec 2 D ec. 3 D ec. 3 D ec. 5 D ec. 6 D ec. 6 S o ld m e r c h a n d is e f o r $ 6 ,7 0 0 o n c r e d it to th e T w o R iv e r s C o ., te r m s 2 /1 0 , n /3 0 . I n v o ic e n o . 1 4 5 5 . C o s t o f th e m e r c h a n d is e s o ld is $ 3 ,6 0 0 . S o ld m e r c h a n d is e f o r $ 3 ,4 0 0 o n c r e d it to th e B e r lin C o ., te r m s 2 /1 0 , n /3 0 . I n v o ic e n o . 1 4 5 6 . C o s t o f th e m e r c h a n d is e s o ld is $ 1 ,8 0 0 . S o ld m e rc h a n d is e fo r $ 5 9 0 fo r c a s h to th e E llis o n C o . In v o ic e n o . 1 4 5 7 . C o s t o f th e m e rc h a n d is e s o ld is $ 3 0 0 . B o r r o w e d $ 1 0 ,0 0 0 f ro m C u s te r B a n k o n a lo n g -te r m n o te p a y a b le . S o ld m e r c h a n d is e f o r $ 7 ,2 0 0 o n c r e d it to th e A m h e r s t C o ., te r m s 2 /1 0 , n /3 0 . I n v o ic e n o . 1 4 5 7 . C o s t o f th e m e r c h a n d is e s o ld is $ 4 ,0 0 0 . R e c e iv e d th e a m o u n t d u e fro m th e T w o R iv e rs C o . fro m th e s a le o n D e c e m b e r 1 . S o ld m e r c h a n d is e o n c r e d it f o r $ 9 5 0 to th e W a u p a c a C o ., te r m s 2 /1 0 , n /3 0 . I n v o ic e N o. 1458. R e c e iv e d th e a m o u n t d u e fro m th e B e rlin C o . fro m th e s a le o n D e c e m b e r 1 . a. Use the sales journal and the cash receipts journal to record these transactions. b. Prepare a schedule of accounts receivable. There were no accounts receivable at December 1. Answer Key 1. E 2. A 3. B 4. C 5. S a le s J o u r n a l D a te 1 2 /1 1 2 /1 1 2 /3 1 2 /6 A c c o u n t D e b ite d T w o R iv e rs C o . B e rlin C o . A m h e rst C o . W aupaca C o. In v o ic e N um ber 1455 1456 1457 1458 PR A c c o u n ts R e c e iv a b le D r. S a le s C r. 6 ,7 0 0 3 ,4 0 0 7 ,2 0 0 950 C a s h R e c e ip ts J o u r n a l D a te 1 2 /2 1 2 /3 1 2 /5 1 2 /6 A ccount C re d ite d S a le s N o te s P a y a b le Tw o R iv e rs C o . B e rlin C o . E x p la n a tio n C a s h s a le s PR C ash D r. 590 B a n k lo a n 6 ,5 6 6 3 ,3 3 2 A c c o u n ts R e c e iv a b le C r. 1 0 ,0 0 0 In v o ic e 1 2 /1 In v o ic e 1 2 /1 S a le s D is c o u n t D r. b. Sun C om pany S c h e d u le o f A c c o u n ts R e c e iv a b le D ecem ber 6 A m h erst C o . $ 7 ,2 0 0 W aupaca C o. 950 T o ta l a c c o u n ts p a y a b le $ 8 ,1 5 0 Page 3 S a le s C r. 590 O th e r A c c o u n ts C r. 1 0 ,0 0 0 134 68 6 ,7 0 0 3 ,4 0 0 ...
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