Old MathJax webview

64.

Assume that Trish Company uses the earnings approach for revenue recognition. Trish Company sells merchandise on account for $ 2,400 to Trash Company. Trash Company returns $ 800 (cost $ 500) of merchandise that was damaged, along with a cheque to settle the account. What entry does Trish Company make upon receipt of the cheque? The damaged inventory is sent to recycling.

68.

Assuming the company uses the earnings approach for revenue recognition, under a periodic inventory system, the sale of merchandise on credit requires a credit to

		Merchandise Inventory.
		Sales Revenue.
		Accounts Receivable.
		Cash.

70.

In a perpetual inventory system, a merchandiser will record the purchase of individual inventory items in a (an) ______ account.

		contra
		subsidiary
		expense
		general ledger

72.

Assuming the company uses the earnings approach for revenue recognition, a company uses the Sales Returns and Allowances account to record

		a discount offered for a large quantity purchase.
		a discount received from a supplier to encourage prompt payment.
		returns of inventory to suppliers.
		customer returns of prior sales.

1 points Saved Assume that Trish Company uses the earnings approach for revenue recognition. Trish Company sells merchandise on account for $ 2,400 to Trash Company. Trash Company returns $ 800 (cost $ 500) of merchandise that was damaged, along with a cheque to settle the account. What entry does Trish Company make upon receipt of the cheque? The damaged inventory is sent to recycling. Cash.......... Accounts Receivable......... 1,600 1,600 Cash........... Sales Returns and Allowances Accounts Receivable......... 1,568 832 2,400 Cash...... Sales Returns and Allowances Accounts Receivable..... 1,600 800 2,400 2,400 Cash.......... Sales Returns and Allowances Accounts Receivable........... 800 1,600 A Moving to another question will save this response. Question 68 of 80 Question 68 1 points Assuming the company uses the earnings approach for revenue recognition, under a periodic inventory system, the sale of merchandise on credit requires a credit Save Answer to Merchandise Inventory. Sales Revenue. Accounts Receivable. Cash. A Moving to another question will save this response. Question 68 of 80 AUG tv 20 oc A za MacBook Pro stion 70 account. In a perpetual inventory system, a merchandiser will record the purchase of individual inventory items in a (an) contra subsidiary expense general ledger 0 0 A Moving to another question will save this response. AUG 20 tv 5 S 7 4 1280