ACCT207 Exam 2

# A ending inventory would be 288 scarves on march

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A) Ending inventory would be 288 scarves on March 3L2412. .fi Vo* company uses the perpetual inventory mdthod. (q) your company's records would show that 140 scarves were sold during the quarter. ffimof the ubor.. v The Junk Shop began the current month with inventory costing \$10,000, then purchased inventory at a cost of \$35,000. The perpetual inventory system indicates that inventory costing \$30,000 was soid during the month for \$40,000. If an inventory count shows that inventory costing \$14,500 is actually on hand at month-end, what amount of shrinkage I o\J" LO rS66 'LO .\*QOO ' ' \*'' On June 15,_Oakley Inc. sells merchandise on account to Sunglass Hut (SH) for \$1,000 terms ?30. On June 20, SH returns to Oakley merchandise that SH had purchased for \$300. OrjgggA+, SH completely firlfrlls its obligation to Oakley by making a cash uayment. Wffit is the amount of cash paid by SH to Oakley? (Fhsaso. fBJsaso q Yszoo i r D) \$i,000. lorto '7oo =}o o X.?&' Nb +/ d*w ? !]{t **** l+"o 4 1 p'squrred during the month? gH:,'d, c) \$14,495. O st''ooo' t0r00 0 J- Ya,wD --ffik -#tr

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l\\ ,/ \\ i / ""' I I \_-----" /t'*"! {': | ,-l L, l, 'I' I -,:--l;,,,,,,r ,,,r. \ A company buys goods for \$15,000-o-n qe{it for sale to consumers. Under a perpetual jpqentory system: ({A)j\$tS,OO0 will be debited to lnventory and \$15,000 will be credited to Accounts 'u-- Pavable. .,,,ef iti,O0O will be debited to lnventory and \$15,000 will be credited to purchases. C) \$i5,000 will be credited to Inventory and \$15,000 willbe credited to Cash. D)"-\$15,000 will be debited to Purchases and \$15,000 will be credited to Accounts " Payable. Your company purchases \$50,000 of inventory from a wholesaler who allows you 45 days to pay. in addition, the wholesaler offers a 3% discount if payment is made within 12 days. Thesapa5anent terms would be expressed as: A) .03112,n/45. B) n/45,3112. C) r/45. .03112. ffitr.,."t+s' BetterBuy selis a computer from inventory for \$599 on credit. BetterBuy originally bought the computer from IBM for \$395. How is the sale recorded in BetterBuy's journal enries? A) Debit Cash for \$599, credit Sales for \$599; debit Inventory for \$395 and credit Cost of.Goods Sold for \$395. Debit Accounts Receivable for \$599, credit Inventory for \$395, and credit Retained Eamings for \$204. Debit Accounts Receivable for \$599, credit Sales for \$599; debit Cost of Goods Sold for \$395 and credit Inventory for \$395. Debit Inventory for \$395, debit Cost of Goods Sold for \$204, and credit Accounts Which of the following is a true statement for a company using a perpetual inventory svstem? ,;Q Purchase returns and allowances is a contra-account to revenue. {p} Sut"r returns and ailowances is a contra-account to revenue. f) Purchase returns and allowances is a contra-account to inventory. D) Sales returns and allowances is a contra-account to inventory. 56. I .": li . i. t'-1 ! ,y o P s8. \ Your store buys ice cream for \$1.50 a half gallon (not including general and \- administrative expenses of \$0.75) and sells it for \$4 a half gallon. V/hich of the ;ft|lowing statements is true? (Ai)Vour gross profit per gallon is \$2.50.
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