1) On a merchandising balance sheet, merchandise inventory is listed as an A) current liability B) expense. chrewnue D) current asset 21 A company that uses the pespetual mevntory aystem purchas invenory for $65,000om acount with terms of z7 of the fellowing is the jourmal entry to record the payment made within 10 days? to Accounts Payable toe 563,700, a debit to Merchandise Ieventory for 51,300 and a credit to Cash fors5,000 B) a debit to Merchandise lnvertory for $1,300, a debit to Accounts Payable for S6000 and a credit to Cash for senso C a debit to Accounts payable for ses,000 a owdit to Merchandise Imwnitory for $1.300 and a credit to Cash for $63,200 Dy a debit to Accounts payable foe $65,000, a credit to Cash for $65,000 and a debit so Mechandise Ihs ventory for $1.300 Whidh of the tollowing g line items will appear on the income statement of a merchandiner but not of a service company? Salaries Expense ) Cost of Goods Sold Q Depreciation Expense D)Supplies Inventory A cmpany using the perpetual inventory system purchased inventory worth $25,000 on account with terms of 2/10 n30, Defective was returned two days later and the accounts wene appropriately adjusted. If the inveice is paid within 10 days, the amount of the purchase discount that woueld be a available to he company is A1 5500. 8) $340 D) 5460 5) The Sales Discounts Forfeited account ) is a contra Sales Revenue account D) zepresents additional sales revenee C)s a balance sheet account Di represents the discount lost whien a customer does not pay within the discount peried 5) A merchandiser uses a perpetual inventory system. The third step in the process of losing the accounts of a merchandiser is to A) make the revenue accounts equal to zero using the Income Summary account. B) makv the inome Summary account equal to zero using the Owners Name, Capital account. C) make the Income Summary account equal to zero using the Ownee's Name, Withdrawals account. D) make the expense accounts equal to zero using the Income Summary account