A company purchased $8,900 of merchandise on June 15 with terms of 3/10,n/45. On June 20, It retumed $445 of that merchandise. On June 24, It paid the balance owed for the merchandise taking any discount it was entitled to. The cash pald on June 24 equals: Multiple Choice $8.455 O O $8.633 o O o $8.900. O $8.201. O $8.246 Cushman Company had $810,000 in sales, sales discounts of $12,150, sales returns and allowances of $18,225, cost of goods sold of $384,750, and $278,640 in operating expenses. Gross profit equals: Multiple Choice $413.100 O O d $394,875. $116.235. $779,625. o O $407,025. A company purchased $1,900 of merchandise on July 5 with terms 3/10,n/30. On July 7, It returned $210 worth of merchandise. On July 8, It paid the full amount due. The amount of the cash paid on July 8 equals: Multiple Choice O $1,633 o o o O O $1,690 O O $1,900. $210. O $1,639 A company purchased $2,700 of merchandise on July 5 with terms 2/10,n/30. On July 7, It returned $650 worth of merchandise. On July 12, it paid the full amount due. Assuming the company uses a perpetual Inventory system, and records purchases using the gross method, the correct Journal entry to record the payment on July 12 is: Multiple Choice o O Debit Accounts Payable $2.050: credit Cash $2,050. o O O Debit Merchandise Inventory $2,050: credit Cash $2.050. O Debit Accounts Payable $2,050: credit Merchandise Inventory $41: credit Cash $2.009. O O Debit Accounts Payable $2.700: credit Cash $2,700. Debit Cash $2,050: credit Accounts Payable $2,050. When purchase costs regularly rise, the Inventory costing method that yields the highest reported net income is: Multiple Choice Average cost method. O Weighted average method. O O Specific Identification method. O FIFO method o o LIFO method. Bedrock Company reported a December 31 ending Inventory balance of $416,000. The following additional Information is also available: The ending Inventory balance of $416,000 Included $74,000 of consigned Inventory for which Bedrock was the consignor. The ending Inventory balance of $416,000 incorrectly included $26,000 of office supplies that were stored in the warehouse and were to be used by the company's supervisors and managers during the coming year. Based on this information, the correct balance for ending Inventory on December 31 is: Multiple Choice O $341.000 o o O $416,000 O $315,000 O O $303,000 O $390.000 Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual Inventory system. Determine the cost assigned to ending Inventory using LIFO. Units Sold at Retail Date May 1 May 5 May 10 May 15 May 24 Activities Beginning inventory Purchase Sales Purchase Sales Units Acquired at Cost 186 units @ $10 = $1,860 256 units @ $12 = $3,072 176 units @ $20 136 units @ $13 = $1,768 126 units @ $21 Multiple Choice O $3.880 $2.820 o o o a o $3.760 $2.950 O $6.700
