$1/$Under a perpetual inventory system, which of the following accounts would be used to record purchases

a$)$ Sales.

b$)$ Inventory.

c$)$ Purchases.

d$)$ Cost of sales.

$2)$Billy$$s Boots purchased inventory with an invoice price of $$5,000$ and credit terms of $2/10,$ n$/30.$ What is the net cost of the goods if Billy$$s Boots pays within the discount period?

$3)$Freight costs incurred by a seller on merchandise sold to customers will cause an increase:

a$)$to the cost of sales of the seller.

b$)$to a discount received account of the seller

c$)$in operating expenses for the seller.

d$)$in the selling expenses of the buyer.

$4)$The amount of net sales on the income statement would be$?$

Operating expenses $ $45,000$

Sales returns and allowances $13,000$

Sales discount $6,000$

Sales revenue $150,000$

Costs of sales $77,000$

$5)$ The amount of gross profit on the income statement would be$?$

Operating expenses $ $45,000$

Sales returns and allowances $13,000$

Sales discount $6,000$

Sales revenue $150,000$

Costs of sales $77,000$

$6)$Hammer Hardware sold goods to James Brown on credit at a price of $$2,750\mathrm{.}00$ including GST$.$ What is the correct accounting entry to record this transaction in Hammer Hardware$$s books?

a$)$Debit Accounts receivable $$2,750$; credit Sales $$2,750.$

b$)$Debit Accounts receivable $$2,500$; credit Sales $$2,500.$

c$)$Debit Accounts receivable $$2,500$; debit GST collections $$250$; credit Sales $$2,750.$

d$)$Debit accounts receivable $$2,750$; credit Sales $$2,500$; credit GST collections $$250.$

$7)$ Under the perpetual inventory system what is the correct entry for the credit purchase of $5$ washing machines at $$300$ per washing machine plus GST of $$30$ each?

a$)$Debit Inventory $$1,500,$ Debit GST $$150$; Credit Accounts payable $$1,650$

b$)$Debit Inventory $$1,650$; Credit Accounts payable $$1,500,$ Credit GST $$150$

c$)$Debit Accounts payable $$1,650$; Credit Inventory $$1,500,$ Credit GST $$150$

d$)$Debit Inventory $$1,650$; Credit Accounts payable $$1,650$