Horner Co. is a merchandise business that use periodic system for their inventory valuation. The following are Horner Co. transactions for January 2015:

Jan. 3 Sell merchandise to Ziesmer $8,000, terms 2/10, n/30.

5 Purchase merchandise from Pheatt $2,000, terms 2/10, n/30.

11 Pay freight on merchandise purchased $300.

12 Pay rent of $1,000 for January.

13 Receive payment in full of Ziesmer.

15 Send Pheatt a check for $950.

17 Purchase merchandise from Roland $1,600, terms 2/10, n/30.

18 Pay sales salaries of $2,800 and office salaries $2,000.

23 Total cash sales amounts to $9,100.

24 Sell merchandise on account to Kirk $7,400, terms 1/10, n/30.

29 Kirk returned merchandise of $1,000.

30 Return merchandise of $300 to Roland.

31 pay Roland for January 17 credit purchase.

4. The company made the following entry to record January 18 transaction:

a.

Debit Cash account

b.

All the given options

c.

Credit Office Salary expense

d.

Debit Sale Salary Expense

1. To record the purchase transaction on January 17, the company will:

a.

All the given options

b.

Debit Account Receivable

c.

Credit Account payable

d.

Debit Inventory

2. To record the sales transaction on January 24, the company need to:

a.

Decrease Account Receivable with $ 7,400

b.

Increase both Account Receivable and sales with $7,400.

c.

Increase Sales and decrease Account receivable with $7,400.

d.

None of the given options.

13. In a perpetual inventory system:

a.

FIFO cost of Ending inventory will be based on latest cost.

b.

All the given options

c.

average costs are based entirely on unit cost simple averages.

d.

a new average is computed under the average cost method after each sale.

11. The cash amount paid on January 15 to pay Pheatt is:

a.

$ 40

b.

$ none of the given options

c.

$ 2,000

d.

$1,960