(1.) Bierman's, a local department store,sold a range of products. Yesterday, an order arrived for the appliance center. 300 ovens, purchased at a cost of $200 each, were distributed among 8 stores. 200 were sold for $300 each across all stores.

The cost of goods sold totals __________.

• a.)
• $20,000
• b.)
• $90,000
• c.)
• $40,000
• d.)
• $60,000

(2.) Carson Hardware offers a discount to customers who use the store credit card on purchases of building materials. When customers pay their bill in full within 15 days of a purchase, 2% can be deducted from the invoice amount, to be used as store credit on their next purchase.

A frequent customer of the Pleasantville Carson Hardware store, Moira, used her store credit card to buy 20 interior doors for $125 each. Moira paid her balance in full 10 days after the purchase.

Mike will record $50 in the __________.

• a.)
• sales account
• b.)
• purchases discount account
• c.)
• purchases account
• d.)
• sales discount account

(3.) Shauna calculated the net sales for her company using the following figures:

Gross sales = $72,900

Sales discounts = $2,450

Purchase returns and allowances = $3,750

Sales returns and allowances = $2,550

The net sales of Shauna's company are __________.

• a.)
• $69,150
• b.)
• $67,900
• c.)
• $64,150
• d.)
• $71,650

(4.) Sally owns a clothing company andfound that she was selling more items, and a greater variety of items, to repeat customers. Sally's CPA advised her to make a set of accounts to separately track what each of her customers bought from her.

To track her customers' purchases, Sally should set up and use a(n) __________.

• a.)
• inventory account
• b.)
• merchandising account
• c.)
• sales subsidiary ledger
• d.)
• purchases subsidiary ledger

(5.) Why are merchandising accounts closed?

• a.)
• To set the permanent accounts to open
• b.)
• To set the temporary accounts to open
• c.)
• To set the temporary accounts tozero
• d.)
• To set the permanent accounts to zero

(6.) Which of the following accounts are closed to Income Summary with a debit entry?

• a.)
• Sales Discounts
• b.)
• Purchase Returns and Allowances
• c.)
• Sales Returns and Allowances
• d.)
• Freight In