On March 12 Klein Company sold merchandise in the amount of $7,800 to Babson Company, with credit terms of 2/10 n/30. The cost of the items soid is $4,500 Klein uses the perpetual inventory system and the gross method of accounting for sales. The journal entry or entries that Kiein wil make on March 12 is Mutple Choice accounts receivable sales Prey 1 of o Nest the ful amount due. Assuming the company uses a purchased $t800 of merchandise on Juty 5 with terns 2no, n/30. On July 7 k returned $200 worth of merchandise On July 28, it paid t A company perpetuel inventory system, and records purchases using the gross method, The conect journal entry to record the purchase on July 5 is Multiple Cholce Dobit Morchandise inventory $t600,crodit Cesh $1600 Debt Menchandiso ventory $1,800, crt Accounts Payable S B Dwer Accounes Paystis $.ory 00 mpany purchased $1,800 Of merchandise on kahy 5 with terms 20 n 30. On July resumed S200worth of merchandise. On Jury 28, it paid the fun amount due. Assuming the company us perpetual imventory system, and records purchases using the gross method, the corect journal entry to record the payment on July 28 s Multiple Cholice Debit Marchandise Inventory $1.600 cret Cash $1600 Debit Accounts Payole $1,800 cet Cai $B00 Deot Cash $1600, cred Accours Payble $600 to Truman Compan, with crecat terms of 210. n/30 The cost of the tems soid s $4,000 Smart uses the perpetusal inventoy On February 3, Smart Compeny sold merchandise in the amount of $5,800 to Truman Company propriate discount The journal entry that Smart mees on February 8% uary 8, nd taies the e andthe gross merod Trumon pays t emoice on Fet Mutiplo Chalice Accounts necetveble A company purchased $1,800 of merchandise on July 5 with terens 2/10, n/30 On July 7, it returned $200 worth of merchandise. On July 28, t paid the full amount due. Assuming the compary uses perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the merchandise return on Juty 7 s Mumple Choice Debit Accournts Payable S1800, credt Purchace Rtuens $200 cedt Merchandise Inventory $1600 Debit Accounts Payable $200cdt Morchande Invetory $200 Debit Merchandise inventory $1600 credt Cash $1600 On March 12, Klein Company sold merchandise in the amount of $7,800 to Babson Company, with credit terms of 2/10, n/30. The cost of the tems sold is $4,500 Kiein uses the perpertual inventory system and the gross method of accounting for sales. On March 15, Babson returns somie of the merchandise. The selling price of the merchandise is $600 and the cost of the merchandise returned is $350 Babson pays the invoice on March 20, and takes the appropriate discount The amount that Kilein receives from Babsion on March 20 is Mutiple Choice $7644 $7800 $7.200 7044 A company purchased $1.800 of merchandise on Juty 5 with tems 210, n/30. On July perpetuel inventory system, and records purchases using the gross method, the comect journal entry to recoid the payment on July 12 is 7, iR returned $200 worth of merchandise On July 12, it paid the full amount due. Assuming the company uses a Mutple Choce Debit Accounts payable $1B00: edt Cach $800 Debit Accounts Paysble S600, credt Merchandise Invetory $32 credt Cash $1568 Deon Cash $1,600 credit Accares Payabe $1600 Mega Skateboard Supplier had net sales of $2.8 million, its cost of goods sold was $1.6 million, and its net income was $0.9 million. Its gross margin ratio equals: Multiple Choice 043% 0175% 056% 057% Frisco Company's Merchandise Inventory account at year end has a balance of $62.15, but a physicat count reveats that only $61,900 of inventory exists. The adjusting entry to record this $215 of inventory shrinkage Multiplo Choice ise invent Inventory shri cost
