21. Cosmos Company on July 15 sells merchandise on account to Cajon Co. for $6,000, terms 2/10, n/30. On July 20 Cajon Co. returns merchandise worth $1,000 to Cosmos Company. On July 24 payment is received from Cajon Co. for the balance due. What is the amount of cash received? a. $4,800 b. $4,900 c. $5,000 d. $6,000 22.Which of the following would require a compound journal entry? a. To record merchandise returned that was previously purchased on account. b. To record sales on account. c. To record purchases of inventory when a discount is offered for prompt payment. d. To record collection of accounts receivable when a cash discount is taken. abong 23.When an account becomes uncollectible and must be written off, Allowance for Doubtful Accounts should be credited. b. Accounts Receivable should be credited c. Bad Debt Expense should be credited. d. Sales Revenue should be debited. a. 0 24. In a perpetual inventory system, cost of goods sold is recorded 00.T 08 on a daily basis. b. on a monthly basis. a. c. on an annual basis. d. with each sale. 25. Two methods of accounting for uncollectible accounts are the allowance method and the accrual method. b. a. allowance method and the net realizable method. direct write-off method and the accrual method. d. c. direct write-off method and the allowance method. 26. Bad Debt Expense is reported on the income statement as part of cost of goods sold. b. reducing gross profit. c. an operating expense. d. a contra-revenue account. a. 27. Under GAAP, companies can choose which inventory system? LIFO FIFO a. Yes b. Yes No Yes Yes c. No d. No No det 28. Paden Company purchased merchandise from Emmett Company with freight terms of FOB shipping point. The freight costs will be paid by the 008 12 a. seller b. buyer. c. transportation company. d. buyer and the seller. 00022 pbl daidw s True/False Under the FIFO method, the costs of the earliest units purchased are the first charged to cost of goods 29 sold. 30.As a result ofa thorough physical inventory, Greeley Company determined that it had inventory worth $325,000 at December 31, 2020. This count did not take into consideration the following facts: Walker Consignment currently has goods worth $47,000 on its sales floor that belong to Greeley but are being sold on consignment by Walker The selling price of these goods is $75,000. Greeley purchased $22,000 of goods that were shipped on December 27. FOB destination, that will be received by Greeley on January 3. Determine the correct amount of inventory that Greeley should report a. $325,000. b. $347,000. c. $372,000. d. $387,000. a ol d vish o aiud viteoor abod l ban bodom woll h bodm asa bodbom To bod toni b d
