Do 4-6, 9, 14, and 15

TUNTUU > Review Questions 1. What is a merchandiser and what is the name of the merchandise e merchandise that it sells? 2. What are the two types of merchandisers? How do they differ? 3. Describe the operating cycle of a merchandiser 4. What is Cost of Goods Sold (COGS), and where is it reported 5. How is gross profit calculated, and what does it represent? 6. What are the two types of inventory accounting systems? Briefly describe each. 7. What is an invoice? 8. What account is debited when recording a purchase of inventory when using the per petual inventory system? 9. What would the credit terms of "2/10,n/EOM" mean? 10. What is a purchase return? How does a purchase allowance differ from a purchase return? 11. Describe FOB shipping point and FOB destination. When does the buyer take own ership of the goods and who typically pays the freight? 12. How is the nct cost of inventory calculated? 13. What are the two journal entries involved when recording the sale of inventory when using the perpetual inventory system? 14. Under the new revenue recognition standard, how is the sale of inventory recorded? 15. Under the new revenue recognition standard, what must companies do at the end of the period related to sales returns? Describe the journal entries that would be recorded 16. When granting a sales allowance is there a return of merchandise inventory from the customer? Describe the journal entry(ies) that would be recorded. 17. What is freight out and how is it recorded by the seller? 18. What is inventory shrinkage? Describe the adjusting entry that would be recorded to account for inventory shrinkage. 19. What are the four steps involved in the closing process for a merchandising company? 20. Describe the single-step income statement. 21. Describe the multi-step income statement. 22. What financial statement is merchandise inventory reported on, and in what section 23. What does the gross profit percentage measure, and how is it calculated? 24 When a company has a contract involving multiple performance obligations must the company recognize revenue? 253. What account is debited when recording a purchase of inventory when odlic inventory system? 26B. When recording purchase returns and purchase allowances under the per tory system, what account is used? se of inventory when using a peri- ances under the periodic inven