11) A company sold merchandise for $20,000 on account with terms of 3/10, n/30. The company uses a perpetual inventory system. After two days, it received defective merchandise worth $2,000. The journal entry to record the cash receipt for sale if the payment is received within 10 days of the invoice date would include ________.
A) a debit to Cash for $17,460, a credit to Merchandise Inventory for $540, and a credit to Sales Revenue for $18,000.
B) a debit to Cash for $17,460, a debit to Sales Discount for $540, and a credit to Accounts Receivable for $18,000.
C) a debit to Cash for $18,000, a debit to Merchandise Inventory for $2,000 and a credit to Accounts Receivable.
D) A debit to Sales for $20,000, a credit to Accounts Receivable for $20,000, and a credit to Sales Discount for $2,000
12) A company sold merchandise for $1,000 on account with terms of 2/10, n/30. The company uses a perpetual inventory system. Defective merchandise of $200 was returned 2 days later. If the payment was received after 20 days, the journal entry to record the cash receipt will include ________.
A) a debit to Cash for $980 and a credit to Accounts Receivable for $980.
B) a debit to Cash for $800 and a credit to Accounts Receivable for $800.
C) a credit to Sales for $800 and a debit to Cash for $ 800.
D) a credit to Cost of Goods Sold for $1000 and a debit to Sales for $1,000.
13) Which of the following is true of net sales revenue?
A) It is calculated by subtracting cost of goods sold from sales.
B) It is calculated by adding sales discounts to sales.
C) It is calculated by adding sales discounts and sales returns and allowances to sales.
D) It is calculated by deducting sales discounts and sales returns and allowances from sales.
14) The normal balances of Sales, Sales Discounts, and Sales Returns and Allowances are: ________.
A) debit, credit, and credit, respectively
B) debit, debit, and credit, respectively
C) credit, debit, and debit, respectively
D) credit, credit, and debit, respectively
15) Under a perpetual inventory system, merchandise returned by a customer to the seller is recorded as a ________ in the books of seller.
A) sales return
B) sales allowance
C) sales discount
D) purchase return
16) From the following details, calculate net sales revenue.
|
Sales revenue |
$460,000 |
|
Cost of goods sold |
300,000 |
|
Operating expenses |
85,000 |
|
Sales discounts |
20,000 |
|
Sales returns and allowances |
15,000 |
|
Interest revenue |
5,000 |
A) $400,000
B) $415,000
C) $425,000
D) $455,000
17) Up-to-date Merchandisers has the following transactions for the month of July.
|
Sales revenue |
$460,000 |
|
Cost of goods sold |
300,000 |
|
Operating expenses |
85,000 |
|
Sales discounts |
20,000 |
|
Sales returns and allowances |
15,000 |
|
Interest revenue |
5,000 |
Calculate Gross Profit.
A) $90,000
B) $125,000
C) $140,000
D) $160,000
18) On November 1, 2015, Paramount Inc. sold merchandise with a cost of $5,000 for $10,000, FOB destination, with payment terms of 3/10, n/40. The company paid transportation costs of $100. Of these, merchandise sold for $3,000 (with a cost of $1,500) was returned on November 6. The company received the payment for the balance amount on November 10, 2015. Calculate the Net sales revenue.
A) $6,790
B) $7,000
C) $4790
D) $7790
19) On November 1, 2015, Paramount Inc. sold merchandise for $10,000, FOB destination, with payment terms of 3/10, n/40. Sales returns on this sale amounted to $3,000. The company received payment for the balance on November 10, 2015. The cost of goods sold was $3,600. Calculate the amount of gross profit from these transactions.
A) $1,800
B) $3,190
C) $1,320
D) $6,790
20) Michelin Jewelers uses the perpetual inventory system. On April 2, Michelin sold merchandise with a cost of $5,500 for $9,000 to a customer on account with terms of 3/15, n/30. Which of the following journal entries correctly records the sales revenue?
A)
|
Sales Revenue |
9,000 |
|
|
Accounts Receivable |
9,000 |
B)
|
Sales Revenue |
9,000 |
|
|
Cost of Goods Sold |
9,000 |
C)
|
Cash |
9,000 |
|
|
Sales Revenue |
9,000 |
D)
|
Accounts Receivable |
9,000 |
|
|
Sales Revenue |
9,000 |
GraduateWriterHelp.com is an online academic writing platform that provides extensive assistance to graduate school students as they work through their research projects, papers and dissertations. GraduateWriterHelp.com gives students access to experienced professionals who can provide the help they need in a timely and efficient manner. The service offers a wide range of services, including editing, proofreading, formatting, researching and more that can give students the confidence they need to write the perfect paper or dissertation for their chosen subject matter.
Services Offered by GraduateWriterHelp.com
GraduateWriterHelp.com offers a wealth of different services designed to make research projects easier for graduate school students. These include editing, proofreading, formatting and researching services, all tailored specifically for graduate-level studies such as PhDs or Master’s degrees in any field from business administration to engineering or even psychology – all with the aim of helping busy students find success in their academics without having to sacrifice other important commitments like family time or work hours towards earning a living wage outside of college hours.
The Benefits of Using GraduateWriterHelp.com
Using GraduateWriterHelp.com gives you access to experts from all over the world who are highly qualified and experienced in helping graduate-level students to complete successful projects in various fields quickly and efficiently – something that would otherwise be difficult, if not impossible, given tight deadlines associated with most Ph.D./Master’s degree programs today. Moreover, using this platform makes it easier for students to keep up with multiple research tasks simultaneously since there are so many different experts available on tap at any one time – no longer will you have to put off studying one topic while focusing on another because of lack of resources! Additionally, having access to professional editors, proofreaders, but also formatters means that quality control standards aren’t sacrificed when finishing major pieces – since these individuals understand what makes up good academic writing better than anyone else and can offer guidance on how best one should go about making improvements along those lines. Finally, there is also an added cost-saving benefit associated with utilizing Graduate Writer Help compared to hiring an independent contractor (which could potentially run into thousands depending on length/complexity).
This service allows users only pay for what students need, which tends to be much lower overall because customers pay per hour rather than project basis, thus resulting to greater financial flexibility, especially for those just starting out postgraduate studies looking to conserve some pennies here there whenever possible!
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more