2)3)4)

The following amounts have been extracted from the accounts of Sell-lt at its year-end, December 31, 20X9: Sales $50,000 Cost of Goods Sold $45,000 Inventory $10,000 Account Payable $ 8,000 If an error were made computing Sell-its ending inventory and inventory were overstated by $2,000 then: Cost of goods sold is overstated by $2,000 liabilities are overstated by $2,000 None of the others alternatives are correct gross profit is understated by $2,000 net income is overstated by $2,000 Banner Ltd., bought merchandise for $900, terms 2/10, n/30. If Banner returns $300 worth of the goods to the vendor and pays the balance by the tenth day, the entry to record the payment should include a O Debit to Purchases Returns and Allowances of $294 O None of the others alternatives are correct O Debit to Accounts Payable of $300 O Credit to Cash of $588 O Debit to Discounts of $12 Checker Co. buys $500 of merchandise from a supplier subject to terms 2/10 n/30. Checker pays within the discount period and subsequently discovers the merchandise is all defective. It is all returned for full credit. O The credit will be for some other amount The credit will not necessitate a journal entry as it will just be offset against the next purchase The credit will be for $500 The credit will be to the Purchases account in Checker's general ledger O None of the above statements are correct At the end of the month Main Ltd. determined that the ending balance of inventory was $125,000. How might this information be recorded? An increase in expenses of $125,000 and an increase in accounts payable of $125,000 An increase in inventory of $125,000 and a decrease in cash of $125,000. A decrease in inventory of $125,000 and an increase in expenses of $125,000 The information is not recorded as no economic event had taken place. None of the others alternatives are correct