1 In many retail businesses, inventory is the largest current asset A True B False 2 Sales to customers who use bank credit cards, such as MasterCard and Visa, are generally treated as credit sales A True B False 3 Purchased merchandise on account for $3,500 Write the Journal Entry A Debit Merchandise Inventory 3,500 Credit Accounts Payable 3,500 B Debit Merchandise Inventory 3,500 Credit Cash 3,500 C Debit Merchandise 3,500 Credit Trades Payable 3,500 D Debit Accounts Payable 3,500 Credit Sales 3,500 4 Requested an allowance of $200 on the merchandise purchased in question 3 This allowance is granted Write the journal entry A Debit Merchandise Inventory 200 Credit Accounts Payable 200 B Debit Accounts Payable 200 Credit Inventory 200 C Debit Customer Refunds Payable 200 Credit Merchandise Inventory 200 D Debit Accounts Receivable 200 Credit Sales 200 5 Sale of merchandise was made for $700 Cost of merchandise sold was $300 Write the Journal Entry A Debit COGS 300 Credit Merchandise Inventory 300 Debit Account Receivable 300 Credit Sales 300 B Debit Merchandise Inventory 300 COGS 300 Debit Sales 700 Credit Account Receivable 700 C Debit Account Receivable 700 Credit Sales 700 Debit COGS 300 Credit Inventory 300 D Cannot do this journal entry because it does not balance 6 Which of the following accounts has a normal debit balance A Purchase discounts B Sales Tax Payable C Allowance for Doubtful Accounts D Delivery expense 7 Paid sales tax of $3,000 to the taxing authority would require a debit to A Sales tax payable B Cash C Sales discount D Sales 8 If the buyer is to pay the freight costs of delivering merchandise, delivery terms are stated as A FOB shipping point B FOB destination C FOB n 30 D FOB buyer 9 Cost of Goods Sold is closed to Income Summary at the end of the period A True B False 10 Which of the following accounts will only be found in the chart of accounts of a merchandising company A Sales B Accounts Receivable C Merchandise Inventory D Accounts Payable

Question

1  In many retail businesses, inventory is the largest current asset  A  True B  False 2  Sales to customers who use bank credit cards, such as MasterCard and Visa, are generally treated as credit sales  A  True B  False 3  Purchased merchandise on account for $3,500  Write the Journal Entry  A  Debit Merchandise Inventory 3,500  Credit Accounts Payable 3,500 B  Debit Merchandise Inventory 3,500  Credit Cash 3,500 C  Debit Merchandise 3,500  Credit Trades Payable 3,500 D  Debit Accounts Payable 3,500  Credit Sales 3,500 4  Requested an allowance of $200 on the merchandise purchased in question 3  This allowance is granted  Write the journal entry  A  Debit Merchandise Inventory 200  Credit Accounts Payable 200 B  Debit Accounts Payable 200  Credit Inventory 200 C  Debit Customer Refunds Payable 200  Credit Merchandise Inventory 200 D  Debit Accounts Receivable 200  Credit Sales 200 5  Sale of merchandise was made for $700  Cost of merchandise sold was $300  Write the Journal Entry  A  Debit COGS 300  Credit Merchandise Inventory 300  Debit Account Receivable 300  Credit Sales 300 B  Debit Merchandise Inventory 300  COGS 300  Debit Sales 700  Credit Account Receivable 700 C  Debit Account Receivable 700  Credit Sales 700  Debit COGS 300  Credit Inventory 300 D  Cannot do this journal entry because it does not balance 6  Which of the following accounts has a normal debit balance  A  Purchase discounts B  Sales Tax Payable C  Allowance for Doubtful Accounts D  Delivery expense 7  Paid sales tax of $3,000 to the taxing authority would require a debit to A  Sales tax payable B  Cash C  Sales discount D  Sales 8  If the buyer is to pay the freight costs of delivering merchandise, delivery terms are stated as A  FOB shipping point B  FOB destination C  FOB n 30 D  FOB buyer 9  Cost of Goods Sold is closed to Income Summary at the end of the period  A  True B  False 10  Which of the following accounts will only be found in the chart of accounts of a merchandising company  A  Sales B  Accounts Receivable C  Merchandise Inventory D  Accounts Payable

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1. In many retail businesses, inventory is the largest current asset. A. True B. False 2. Sales to customers who use bank credit cards, such

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