5/2019 Chapter 5 E. Instead, assume Saulk fails to pay PW within the discount period. Make the payment e of entry with no discount Cash 3800 Inuentory 3800 F. Saulk sold merchandise purchased from PW Audio to Best Buys for $5,500, terms 2/10, n/30. The markup was $2,000. (not in text) Cash S, 5000 ncatevenue 3.Soo Cost of coS 2000 ncory2 2ooo G. Saulk paid Haul-it $175 to ship the merchandise sold. (not in text) Inventory ns Cash S" IV. Make the above entries on the books of PW Audio, Inc. A. The merchandise sold cost PW Audio $2,400. B. Cash 2400 S ales Revenue 2400 C. The merchandise returned to PW Audio costs $140. D. Sales Return Alleugnces 140 Account Reci Nable 140 E. V. What is the format for the Multi-Step Income Statement? (p. 231) (8 10 steps) Sgegats the opgoperotking expens non operating xpenses,gaioss fyom non opere tng rev enues Chapter 5 g Across the Organization Should Costco change its return policy? For which type of d. What is the difference between single-step income statement and a multiple- items? step income statement? Which gives more useful information? Which is used more often in financial reporting? See example for PW Audio Supply, Inc. on p. 231 -multi-step income statement, illustration 5-11 J. Nonoperating Activities (p. 230) What are operating expenses? Nonoperating expenses? Give examples of both. Non operating revenues and gains (4 examples) Non operating expenses and losses (4 examples) K. Comprehensive Income Statement unrealized gains and losses should be shown after net income (p. 232) more inclusive measurement of income Ethics Insight-Disclosing more details.. are annual reports getting longer or shorter? Did IBM mislead investors by reducing SGA when it recognized gain on the sale of a building? When eBay sold the remainder of Skype to Microsoft at a gain of $1.7 billion, should it be reported separately from operating income? . Accounting Transactions for a Merchandiser-Saulk A. Saulk Stereo buys $3,800 of electronics for resale from PW Audio Supply, Inc.on May 4. What entry is made and what document supports this entry? Atcount payable 3e0o B. Saulk uses Haul-It Freight Company to ship the merchandise purchased from PW Audio. The freight bill is $150. Inventoru 1so Cash IsO C. Saulk returns $300 of the merchandise to PW Audio. Account Pay abie 300 D. Sauk pays for merchandise it purchased from PW Audio and takes the 2% discount. Accouts pay abie 3800 Cash 372 48 Inventory 7