Direction: Choose the best/correct answer among the given choices (1 mrk each) 1. The sales accounts that normally have a debit balance are: a. Sales Discounts. b. Sales Returns and Allowances. c. Both Sales Discounts and Sales Returns and Allowances. d. Neither Sales Discounts nor Sales Returns and Allowances. 2. To record the sale of goods for cash in a perpetual inventory system: a. only one journal entry is necessary to record cost of goods sold and reduction of inventory. b. only one journal entry is necessary to record the receipt of cash and the sales revenue. c. two journal entries are necessary: one to record the receipt of cash and sales revenue, and one to record the cost of goods sold and reduction of inventory. d. two journal entries are necessary: one to record the receipt of cash and reduction of inventory, and one to record the cost of goods sold and sales revenue. 3. Carrefour sold merchandise for $5,000 to Alraya Supermarket, with credit terms 3/10, n/30; invoice dated July 1. What is the discount% based on the credit terms? a. 10% if paid by July 30 b. 3% if paid by July 10 c. 30% if paid by July 3 d. 3% if paid by July 30 4. A company had a beginning inventory of $10,200. During the month, it purchased additional inventory for $37,100. At the end of the month, its inventory had a debit of $8,200. What is the cost of goods sold? a. 39,100 b. 55,500 c. 47,100 d. 18,400 5. Alpha Express had sales of $124,300, sales discounts of $1,650, sales returns of $4,525, and operating expenses of $2,500. Alpha Express's net sales equals: a. 115,625 b. 118,125 c. 120,625 d. 121,800 6. AMG company has beginning inventory of 20 units at a cost of $8 each on February 1. On February 3, it purchases 10 units at $10 each. 8 units are sold on February 5. Using the FIFO inventory method, what is the cost of the 8 units that are sold? a. $69.33 b. $72.00 c. $80.00 d. $64.00 7. Cost of goods available for sale consists of two elements: beginning inventory and a. ending inventory. if goods purchased. c. cost of goods sold. d. all of them Checked by: Approved by