EX#2 - Glossary: Define an inventory system in which the company does not maintain detailed records of goods on hand throughout the accounting period and determines cost of goods sold only at the end of the accounting period. A Perpetual inventory system Periodic inventory system Just-in-Time Inventory System 0. Specific Identification Inventory Method TEXA2-Glossary: A perpetual inventory System Als updated each time an Her is purchase and updates cost of goods sold. B. Uses optical scanners and bar codes to control items. Mainly depends on physical counts of goods to update cost of goods sold. D. A and B and C E A and B. EX53 Glossary: What is Cost of Goods Sold? A The excess of net sales over the profit margin. B. The total cost of merchandise sold during an accounting period. c. Net Sales less returns. D. Net Sales less operating expenses. Homework #4 Glossary Complete the (3) blanks in the order sented: A Purchase 2 is a deduction granted by the seller to encourage the buyer to keep the merchandise. To record a Purchase 7. the buyer debits accounts payable and credits inventory. The seller offers the buyer a Purchase for prompt payment A Allowance and Refund and Discount B. Discount and Allowance and Retum c. Allowance and Return and Discount D. Return and Allowance and Discount Homework 585 Glossary: When ownership Megate of goods shipped Free on Board (FOB) passes to the buyer at the destination; who pays the freight costs? A Buyer pays the freight costs. 8. Seller pays the freight costs. c. The public carrier pays the freight costs. o. No-freight costs. Cost of Goods Sold Periodic Inventory System STUDY THE FORMAT What is the flow of Inventory Costs? - det cont - PERC v ya Bering more Lady BOX Puede Homeworks 18-Glossary: Sales Returns and Allowances and Sales Discounts are: Liscal Corporation reported the following amounta vetery 511,600 begelever $17.200 perchas 1,400 116, purchase s and all aces 51,100 riche r to decimal place) Contra liabilities accounts. Contra revenge accounts. c Contra expense accounts. . Contra assets accounts. A $119.693 and 65.1% $76,507 and 41.8% $119,093 and 64.% 575,207 and 41.3% Homework : If a sales invoice shows credit terms of 110, 130, the discount period is: Homework5810: The revenue recognition principle under accrual accounting requires that sales revenues be recognized: A 30 days 1 day G 10% 10 days A Immediately when the merchandise is ordered on line through Amazon.com. When the goods are transferred from the seller to the buyer. 6. When the cash is received by the seller. . Immediately, when the freight terms are free on board. TEX5 11. CTL Corporation ( Wholesaler uses a perpetual inventory system. CTL received $500 of returned merchandise in good condition (with a cost of $300) that it had sold a week earlier. When it records the return, the journal entry will require: Debit to Sales Returns and Allowances $500 Debit to Cost of Goods Sold $300. c. Debit to Accounts Receivable $500. Credit to Inventory $300. Inventory system, it purchased on account $2,000 of merchandise on July 5. Credit terms are 2./10 30. It returned $400 of the merchandise on July 9. When Mack's pays its bil on August 5, the journal E014: Beck Retailer Inc. uses a perpetual inventory system. On November 30, Beck purchased $5,000 merchandise on account, terms 3/10, 1/30 with delivery terms of FOB Shipping Point Beck paid United Freight Company $200 cash for freight charges. The jouma entry for freight charges requires a DEBT Operating Expense for $200. & Cash for $200. c Freight-out for $200. Inventory for $200. A Debit to Accounts Payable for $2000 Credit to Accounts Payable for $1600 Credit to Cash for $1600 Credit to Cash for $1568 EXS15. REI Company purchased goods on credit of 5750 on June 13 with terms 240 /30. REI receives a purchase allowance of $50 on June 16 for defective goods. Assuming RE Pays the Invoice on June 23 using a perpetual inventory system, what amount is credited to cash? EX5016 Flen's Boutique Shop has beginning inventory of $60,000, cost of goods purchased and freight-in total $350000, and ending inventory is $50,000 What is Ellen's cost of goods sold under a periodic inventory system? A $700 $735 c. $686 D. $750 A $420,000 $390,000 c. $370,000 $330,000 EX5617: A retailer, using a perpetual inventory system, purchased goods on account for $3,000 with credit terms of 2/10, 30. When it pays the amount due within the discount period, the journal entry will include a DEBIT to: FX4018: A retailer, using a perpetual inventory system, purchased goods on account for $3,000 with credit terms of 2/10, 1/30. When it pays the amount due within the discount period, the journal entry will include a CREDIT to: Accounts Payable for $3,000 B Accounts Payable for $2.940 c. Inventory for $50 a. Cash for $2,940 A Accounts Payable for $3,000 B. Accounts Payable for $2,940 c Accounts Payable for $2.940 and Inventory for $50 Cash for $2.940