A company uses the perpetual inventory method. Which of the following entries would be made to record a $1,200 sale of merchandise on account? The merchandise had cost the company $800.

Question 3 options:

	The accounting entry would be a $1,200 debit to Cost of Goods Sold and a $1,200 credit to Sales Revenue.
	The accounting entry would be a $800 debit to Cost of Goods Sold and a $800 credit to Inventory.
	The accounting entry would be a $1,200 debit to Accounts Receivable and a $1,200 credit to Sales Revenue.
	Both B and C would be necessary to record the sale.

A company that uses the periodic inventory method purchases inventory of $1,000 on account with terms of 2/10 net/30. Which of the following entries would be made to record the payment for the inventory if the payment is made within 10 days?

Question 10 options:

	The accounting entry would be a $1,000 debit to Accounts Payable and a $1,000 credit to Cash.
	The accounting entry would be a $20 debit to Purchase Discounts, a $1,000 debit to Accounts Payable and a $1,020 credit to Cash.
	The accounting entry would be a $1,000 debit to Accounts Payable, a $20 credit to Purchase Discounts and a $980 credit to Cash.
	The accounting entry would be a $980 debit to Accounts Payable, a $20 debit to Purchase Discounts and a $1,000 credit to Cash.

A company receives an invoice that indicates that title to the merchandise will pass to the company when the company receives the goods. Which of the following will be noted as the delivery terms?

Question 11 options:

	FOB UPS
	FOB destination
	FOB 2/10 n/30
	FOB shipping point