1. McLeod Corporation is a merchandising company. The year began with inventory of $25,000, Purchases for the year were $50,000, and the Ending Inventory was $13,000. What is the Cost of Goods Sold that would be reported on the income statement?

$88,000

$38,000

$12,000

$62,000

2. Shockglass Company had a beginning inventory of $17,250. During the year, the company recorded inventory purchases of $65,000 and cost of goods sold of $54,000. The ending inventory must equal:

$27,000.

$29,000.

$28,000.

$28,250.

3. Ace Electronics had cost of goods sold of $25,000. If purchases were $27,000 and ending inventory was $8,000, Ace's beginning inventory must have been:

$6,000.

$10,000.

$33,000.

$19,000.

4. Purrfect Pets uses the perpetual inventory system. At the beginning of the quarter, Purrfect Pets has $46,000 in inventory. During the quarter the company purchases $10,300 of new inventory from a vendor, returned $800 of inventory to the vendor, and took advantage of discounts from the vendor of $360. At the end of the quarter the balance in inventory is $34,500. What is the cost of goods sold?

$21,800

$20,640

$22,300

$11,500

5. Etcetera Clothing sold merchandise inventory on account at a price of $19,000 with payment terms of 2/10, n/30. The merchandise cost Etcetera Clothing $15,000. If the customer paid for the merchandise 5 days after receiving the invoice, how much cash was collected by Etcetera Clothing?

$15,000

$18,620

$14,700

$19,000

6. The following account balances appeared on the companys trial balance at year-end:

Sales Returns and Allowances	$ 590
Accounts Receivable	9,900
Sales Discounts	1,150
Sales Revenue	66,200
Selling, General, and Administrative Expenses	750

The amount of net sales reported on the income statement would be:

$74,100.

$66,200.

$64,460.

$63,710.

7. A company has net sales of $638,100 and cost of goods sold of $465,813. The company's gross profit percentage is:

0.40%.

73%.

27%.

3.70%.

8. Two different companies, Ripper and Berners, entered into the following inventory transactions during December. Both companies use a perpetual inventory system.

	December 3 Ripper Corporation sold inventory on account to Berners Corp. for $497,000, terms 2/10, n/30. This inventory originally cost Ripper $315,000.
	December 8 Berners Corp. returned inventory to Ripper Corporation for a credit of $3,200. Ripper returned this inventory to inventory at its original cost of $2,028.
	December 12 Berners Corp. paid Ripper Corporation for the amount owed.

Required:

a.	Prepare the journal entries to record these transactions on the books of Ripper Corporation. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)