1)Given the following information for the year ended 12/31/X3:

12/31/X3 Balances DR(CR)

Sales Revenues$ $(210,000)

Selling and Administrative Expense 42,000

Sales Discounts 6,000

Sales Returns and Allowances 11,000

Cost of Goods Sold 125,000

Interest Expense 4,000

Determine the 20X3 gross margin

$22,000

$26,000

$39,000

$68,000

none of these

Use this information for the next 5 questions for Jones Furniture Store (assume Jones uses a perpetual inventory accounting system) is as follows Jan. 2: Jones purchased 20 tables at $300 each on account, terms of 1/10, N/30. Jan. 10: Jones paid for the 20 tables purchased on Jan. 2, net of the discount. Jan. 14: Jones sold to a customer on account, with terms of 3/10, N/30, five of the tables purchased on Jan. 2 at a sales price of $500 each. Jan. 16: The customer returned one of the tables sold on Jan. 14 because it was the wrong color and received full credit on her account. Jan. 23: The customer paid the remaining amount due after the Jan. 16 return, less the discount for early payment.

6.

The journal entry by Jones for the Jan. 2 purchase would be:

a. Cost of Goods Sold6,000Accounts Payable6,000

b. Inventory6,000Cash6,000

c. Purchases6,000Accounts Payable6,000

d. Purchases6,000Cash6,000

which is the right one ?

a

b

c

d

7.

The journal entry by Jones for the Jan. 10 payment would include a credit to

Accounts Payable for $6,000.

a.Cash for $6,000.

b.Inventory for $60.

c.Sales Discounts for $60.

d.none of these

8.

The journal entry(ies) by Jones for the Jan. 14 sale would include debits to both

a.Sales Revenue and Inventory.

b.Sales Revenue and Cost of Goods Sold.

c.Accounts Receivable and Inventory.

d.Accounts Receivable and Sales Revenue.

e.none of these

9.

The journal entry(ies) by Jones for the Jan. 16 transaction would typically include debits to both

Accounts Receivables and Cost of Goods Sold.

Sales Discounts and Cost of Goods Sold.

Sales Returns and Allowances and Inventory.

Sales Revenues and Sales Returns and Allowances.

none of these

10.

The journal entry by Jones for the Jan. 23 receipt would include a credit to

Accounts Receivable for $1,940.

Accounts Receivable for $2,000.

Cash for $2,000.

Cash for $1,940.

Sales Discounts for $60.