1- A company, using the periodic inventory system, has merchandise inventory costing $210 on hand at the beginning of the period. During the period, merchandise costing $635 is purchased. At year-end, merchandise inventory costing $160 is on hand. The cost of merchandise sold for the year is

Select one:

a. $265

b. $685

c. $795

d. $635

2- If the physical count of the inventory revealed $158,000 of merchandise on hand and the inventory records reported $163,000, what would be the necessary adjusting entry to record inventory shrinkage?

Select one:

a. debit Merchandise Inventory, $5,000; credit Cost of Merchandise Sold, $5,000

b. debit Merchandise Inventory, $158,000; credit Cost of Merchandise Sold, $158,000

c. debit Cost of Merchandise Sold, $163,000; credit Merchandise Inventory, $158,000

d. debit Cost of Merchandise Sold, $5,000; credit Merchandise Inventory, $5,000

3- Abbey Co. sold merchandise to Gomez Co. on account, $35,000, terms 2/15, net 45. The cost of the merchandise sold is $24,500. Abbey Co. issued a credit memo for $3,600 for merchandise returned that originally cost $1,700. Gomez Co. paid the invoice within the discount period. What is the amount of gross profit earned by Abbey Co. on the above transactions?

Select one:

a. $30,772

b. $7,972

c. $31,400

d. $10,500

4- A retailer purchases merchandise with a catalog list price of $30,000. The retailer receives a 15% trade discount and credit terms of 2/10, n/30. How much cash will be needed to pay this invoice within the discount period?

Select one:

a. $24,900

b. $24,990

c. $30,000

d. $29,400

5- Pierce Company sold to Stanton Company merchandise on account FOB shipping point, 2/10, net 30, for $20,000. Pierce prepaid the $500 shipping charge. Which of the following entries does Pierce make to record this sale?

Select one:

a. Accounts ReceivableStanton, debit $20,100? Sales, credit $20,100

b. Accounts ReceivableStanton, debit $20,000? Sales, credit $20,000

c. Accounts ReceivableStanton, debit $19,600? Sales, credit $19,600, and Accounts ReceivableStanton, debit $500? Cash, credit $500

d. Accounts ReceivableStanton, debit $20,000? Sales, credit $20,000, and

Delivery Expense, debit $500; Cash, credit $500