Second Midterm -- Chapters 5, 6 & 7 100 points
Multiple Choice (1 points each)
Which of the following accounts has a normal debit balance?
a. Accounts Payable
b. Sales Returns and Allowances
d. Interest Revenue
Evening Session, Spring 2009
Merchandise is ordered on June 13; the merchandise is shipped by the seller and the
invoice is prepared, dated, and mailed by the seller on June 16; the merchandise is
received by the buyer on June 18; the entry is made in the buyer's accounts on June 19.
The credit period begins with what date?
A retailer purchases merchandise with a catalog list price of $15,000.
receives a 30% trade discount and credit terms of 2/10, n/30.
What amount should the
retailer debit to the Merchandise Inventory account?
Merchandise with an invoice price of $5,000 is purchased on September 2 subject to
terms of 2/10, n/30, 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