CHAPTERS 4,5&6--Page 2 9. The journal entry to record a return of merchandise purchased on aceount under a perpetual inventory system would credi t a- Accounts Payable. b. Purchase Returns and Allowarces c. Sales d. Merchandise Inventory purchased merchandise from Cates Company with freight freight costs will be paid by the 20. Bryan Company terms of FOB shipping point. The a. seller b. buyer c. transportation company d. buyer and the seller ant Company purchased merchandise inventory with an invoice price of $4,000 and credit the a. $4,000. b. $3,920 C. $3,600. d. $3,680. 11. Gr terms of 2/10, n/30. What is the net cost of goods if Grant Company pays within the discount period? 12. The Sales Returns and Allowances account is classified as a (n) 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 Karr Company with credit terms of 2/10, n/30. Karr 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 as a. an intangible asset. b. property, plant, and equipment. c. a current asset. d. a long-term investment 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