6) Which of the following accounts is not a contra account?

A. Inventory

B. Accumulated Amortization

C. Sales Returns and Allowances

D. Sales Discounts

7) To calculate the gross margin percentage,

A. Divide net sales by net income

B. Divide current assets by current liabilities

C. Divide total liabilities by total assets

D. Divide gross margin by net sales

8) If a purchaser returns goods purchased on account to the supplier under a perpetual inventory system, the purchaser would debit:

A) Inventory and credit Accounts Payable.

B) Accounts Payable and credit Inventory.

C) Inventory and credit Accounts Receivable.

D) Accounts Receivable and credit Inventory.

9) The seller is responsible for the shipping costs when the shipping terms are:

A) FOB destination.

B) COD destination.

C) FOB shipping point.

D) COD shipping point.

10) Under a perpetual inventory system, the entry to record the cost of goods sold would include a debit to:

A) Cost of Goods Sold and a credit to Inventory for the retail price of the inventory.

B) Inventory and a credit to Sales Revenue for the retail price of the inventory.

C) Cost of Goods Sold and a credit to Inventory for the cost of the inventory.

D) Inventory and a credit to Cost of Goods Sold for the cost of the inventory.