Question
A sales invoice included the following information: merchandise price, $7,800; terms 1/10, n/eom; FOB shipping point with prepaid freight of $592 added to the invoice.
A sales invoice included the following information: merchandise price, $7,800; terms 1/10, n/eom; FOB shipping point with prepaid freight of $592 added to the invoice. Assuming that a credit for merchandise returned of $1,600 is granted prior to payment and that the invoice is paid within the discount period, what is the amount of cash that should be received by the seller?
a.$6,730
b.$1,600
c.$7,800
d.$8,308
Pierce Company sold to Stanton Company merchandise on account FOB shipping point, 2/10, net 30, for $400. Pierce prepaid the $40 shipping charge. Which of the following entries does Pierce make to record this sale?
a.Accounts Receivable-Stanton, debit $40; Sales, credit $40
b.Accounts Receivable-Stanton, debit $392; Sales, credit $392, and Accounts Receivable-Stanton, debit $40; Cash, credit $40
c.Accounts Receivable-Stanton, debit $440; Sales, credit $440
d.Accounts Receivable-Stanton, debit $40; Sales, credit $40, and Transportation Out, debit $400; Cash, credit $400
The Boxwood Company sells blankets for $30 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1.
| Date | Blankets | Units | Cost |
| May 3 | Purchase | 33 | $12 |
| 10 | Sale | 13 | |
| 17 | Purchase | 20 | $14 |
| 20 | Sale | 23 | |
| 23 | Sale | 1 | |
| 30 | Purchase | 26 | $15 |
Assuming that the company uses the perpetual inventory system, determine the gross profit for the sale of May 23 using the FIFO inventory cost method.
a.$16
b.$240
c.$14
d.$282
The following lots of Commodity Z were available for sale during the year.
| Beginning inventory | 11 units at $50 |
| First purchase | 18 units at $51 |
| Second purchase | 21 units at $56 |
| Third purchase | 15 units at $62 |
The firm uses the periodic system, and there are 21 units of the commodity on hand at the end of the year. What is the ending inventory balance at the end of the year according to the FIFO method?
a.$3,574
b.$1,050
c.$3,553
d.$1,266
The Corbit Corp. sold merchandise for $10,000 cash. The cost of the goods sold was $7,590. The journal entries to record this transaction under the perpetual inventory system would be
a.
| Cash | 10,000 | ||
| Sales | 10,000 | ||
| Cost of Goods Sold | 7,590 | ||
| Inventory | 7,590 |
b.
| Cash | 7,590 | ||
| Sales | 7,590 | ||
| Cost of Goods Sold | 7,590 | ||
| Inventory | 7,590 |
c.
| Cash | 10,000 | ||
| Sales | 10,000 | ||
| Cost of Goods Sold | 10,000 | ||
| Inventory | 10,000 |
d.
| Cash | 10,000 | ||
| Inventory | 10,000 | ||
| Cost of Goods Sold | 7,590 | ||
| Sales | 7,590 |
The following lots of Commodity Z were available for sale during the year.
| Beginning inventory | 11 units at $50 |
| First purchase | 18 units at $51 |
| Second purchase | 21 units at $56 |
| Third purchase | 15 units at $62 |
The firm uses the periodic system, and there are 21 units of the commodity on hand at the end of the year. What is the ending inventory balance at the end of the year according to the FIFO method?
a.$3,574
b.$1,050
c.$3,553
d.$1,266
The following lots of a particular commodity were available for sale during the year
| Beginning inventory | 12 units at $52 |
| First purchase | 15 units at $51 |
| Second purchase | 26 units at $28 |
| Third purchase | 19 units at $63 |
The firm uses the periodic system, and there are 22 units of the commodity on hand at the end of the year. What is the ending inventory balance at the end of the year rounded to nearest dollar according to the average cost method? Do not round intermediate calculations.
a.$1,134
b.$1,013
c.$1,144
d.$1,281
Merchandise subject to terms 2/10, n/30, FOB shipping point, is sold on account to a customer for $22,000. What is the amount of sales discount allowable?
a.$224
b.$440
c.$163
d.$216
Merchandise with a sales price of $4,900 is sold on account with terms 2/10, n/30. The journal entry to record the sale would include a
a.debit to Customer Refunds Payable for $98
b.debit to Accounts Receivable for $4,900
c.credit to Sales for $4,802
d.debit to Cash for $4,900
The Boxwood Company sells blankets for $39 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1.
| Date | Blankets | Units | Cost |
| May 3 | Purchase | 9 | $16 |
| 10 | Sale | 5 | |
| 17 | Purchase | 13 | $18 |
| 20 | Sale | 5 | |
| 23 | Sale | 3 | |
| 30 | Purchase | 11 | $23 |
Assuming that the company uses the perpetual inventory system, determine the cost of goods sold for the sale of May 20 using the FIFO inventory cost method.
a.$170
b.$82
c.$154
d.$88
The inventory data for an item for November are:
| Nov. 1 | Inventory | 25 units at $21 | |
| 4 | Sold | 9 units | |
| 10 | Purchased | 34 units at $19 | |
| 17 | Sold | 24 units | |
| 30 | Purchased | 25 units at $21 |
Using a perpetual system, what is the cost of the goods sold for November if the company uses LIFO?
a.$981
b.$677
c.$645
d.$1,019
The following lots of Commodity Z were available for sale during the year.
| Beginning inventory | 7 units at $48 |
| First purchase | 17 units at $53 |
| Second purchase | 52 units at $57 |
| Third purchase | 17 units at $57 |
The firm uses the periodic system, and there are 22 units of the commodity on hand at the end of the year. What is the ending inventory balance at the end of the year according to the LIFO method?
a.$5,170
b.$1,131
c.$1,056
d.$1,254
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