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CHAPTERS 4.5&6-Page 2 9. The journal entry to record a return of merchandise purchased account under a perpetual inventory system vould credit a. Accounts Payable b. Purchase Returns and Allowances c. Sales d. Merchandise Inventory 10. Bryan Company purchased merchandise trom Cates Company with freight of FoB shipping point. The freight costs will be paid by the terms a. seller b. buyer d. buyer and the seller 11. Grant Company purchased merchandise inventory with an invoice prtc of $4,000 and credit terms of 2/10, n/30. What is the net cost of the gooda it Grant Company pays within the discount period? a. $4,000 b $3,920. c. $3,600, d. $3, 680. 12. The Sales Returns and Allowances account B classified as ain) a asset account b. contra asset account c. expense account d. contra revenue account. 13. Hale Company sells merchandise on account for $3,000 to Kar: Company merchandise with credit terms of 2/10, n/30. Xarr Company returns $500 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check? a. $2,940 b. $2,950. C, $2,500. d. $2,450. 14. On a classified balance sheet, merchandise inventory is classified a. an intangible asset. b. property, plant, and equipment. c. a current asset. 15. Gross profit for a merchandiser is net sales minus a. operating expenses. b. cost of goods sold. c. sales discounts. d. cost of goods available for sale