1.

Tonys Market recorded the following events involving a recent purchase of merchandise. He received goods for $50,000, terms 2/10, n/30, then returned $1,000 of the shipment for credit. He then paid $250 freight on the shipment and paid the invoice within the discount period. As a result of these events, the companys merchandise inventory

increased by $48,020.

increased by $49,250.

increased by $48,265.

2.

Mather Company made a purchase of merchandise on credit from Underwood Company on August 8, for $9,000, terms 3/10, n/30. On August 17, Mather makes the appropriate payment to Underwood. The entry on August 17 for Mather Company includes

a credit to Accounts Payable for $9,000.

a credit to cash for $9,000.

A debit to inventory for $270.

A credit to cash for $8,730.

increased by $48,270.

3.

Rasner Co. returned defective goods costing $3,000 to Markum Company for credit. The goods had been purchased on credit, terms 3/10, n/30, but had not yet been paid. The entry by Rasner Co. includes

a credit to merchandise inventory for $3,000.

a credit to merchandise inventory for $2,910.

a credit to accounts payable for $3,000.

a credit to accounts payable for $2,910.

4.

Griffey Company has cash sales of $4,200 from merchandise costing $3,000. The entries to record the days cash sales will include

a $3,000 credit to Cost of Goods Sold.

a $4,200 credit to Cash.

a $3,000 credit to Merchandise Inventory.

a $4,200 debit to Accounts Receivable.

5.

A credit sale of $800, terms 2/10, n/30, was made and then $50 was returned for credit. If the amount is paid in full 9 days later, the amount paid is

$735.

$784.

$800

$750.

6.

The entry to record the receipt of payment within the discount period on a sale of $750, with terms 2/10, n/30, will include a credit to

Sales Discount for $15.

Cash for $735.

Accounts Receivable for $750.

Sales for $750.

7.

The collection of a $600 account within the 2 percent discount period will result in a

debit to Sales Discounts for $12.

debit to Accounts Receivable for $588.

credit to Cash for $588.

credit to Accounts Receivable for $588.

8.

Moses Company sells merchandise on account for $2,000 to Lane Company with credit terms 2/10, n/30. Lane Company returns $300 of merchandise that was damaged, along with a check to settle the account within the discount period. Moses Companys entry upon receipt of the check includes

a debit to Accounts Receivable for $2,000.

a credit to Cash for $1,666.

a debit to Sales Discounts for $34.

a credit to Sales Returns and Allowances for $300.