1. Clover Hardware sold a range of products. A few weeks ago, orders arrived for the garden center and outdoor living areas. 500 grills, purchased at a cost of $75 each, were distributed among 10 locations. 200 were sold for $175 each across all locations. The cost of goods sold totals __________. a.) $15,000 b.) $35,000 c.) $2,500 d.) 2. Throughout September, Taylor Hardware offered a discount to customers who used their store credit card on paint purchases. When customers paid their bill in full within 30 days of a paint purchase, 10% was deducted from the invoice amount, to be used as store credit on their next purchase. Louise is a building painter who purchased $7,500 worth of paint using her Taylor Hardware credit card. Louise paid her balance in full 29 days after the purchase. $7,500 is recorded in the __________. a.) purchase discount account, b.) purchase account c.) sales discount account d.) sales account 3. After Kyle completed the closing process, he looked forward to preparing his financial statements. He reviewed the accounts and began collecting the information for the expanded income statement. The Goods Available for Sale total is __________. a.) $27,000 b.) $121,000 c.) $59,000 d.) $113,000 4. 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.) $71,650 b.) $69,150 c.) $67,900 d.) $64,150 5. Which of the following descriptions is a benefit of having a subsidiary ledger? a.) Using customers' addresses to determine payment terms b.) Tracking the spending habits of frequent customers c.) Tracking the customers' cash transactions d.) Using customers' credit report scores to determine interest rates 6. The acronym used for the closing procedures of a merchandising company is: a.) (P) Purchases (R) Revenues (E) Expenses (D) Drawings (I) Income Summary b.) (M) Merchandise (R) Revenues (E) Expenses (D) Drawings (I) Income Summary c.) (R) Revenues (E) Expenses (D) Drawings (I) Income Summary (M) Merchandise d.) (R) Revenues (E) Expenses (D) Drawings (I) Income Summary 7. Which of the following merchandise accounts are closed with a debit to Income Summary? a.) Purchases b.) Sales Returns and Allowances c.) Sales Discounts d.) Purchase Discounts $37,500