Accounting 201-Fall 2017 Whitemore Test No. 2 Name: LIN: 1The credit 1crms 2/la, tu30 are interpreted as A) 2% discount if paid within 30 days B) 30% discount if paid within 2 days. C) 2% cash discount if the amount is paid within 10 days, with the balance de in 30 days D) 10% Cloh diseomt if the amout is peid within 2 days, with balnce due in 30 days. 2. Coots included in the Merchandise Imvensory ascoust can inchade A) Freight-out. B) Goods in transit sent to us FOB destinations C) Invoice price misus any discoare D) All of dhe ahove. 3. Merchandse invetsory A) Is shown as an expetisc on Ge Incone Staterment B) Is classified with investreetves cn the balnce shec C) Is a carrem eset. D) Inclades supplics 4. On October 3, Whaley Comeany auld merclhnisc in the amourt of $5,400 to Loc Compny, wi crodin sems of 2/10, /30. The cost of the is sold is $4,0 Whaley saes the perpeto investory syiten Lee peys the imice on October , ad toks the a journal entry that Whaley makes on October 8 is Accots rece vable eccusts reecivable Sales decots ccounts receivshlo E. Ca Sales discount Accounta receivable soft drinks. Because of the way Hearn shores ins S. Hearn Beverages sells a wide variety of c) D) sually the first sold. Given thewe inventory of soda, the most recently purchased cases are u circumstances, what low assumption must Hearn use? A) LIFO Weighted Average. Any assumption it wishes. B) FIFo