Q1.a.
b.
c.
Q2.
Q3.
The following transactions belongs to Shaker auto spare parts store in Riyadh & Abdul Latif-Jameel Service Center in Jeddah: . On March 1, Shaker store purchased $10,000 of auto spare parts from Abdul Latif-Jameel Service Center, FOB shipping point, terms 10/7/30. These spare parts had cost Abdul Latif-Jameel Service Center $5700. On March 3 The transportation/shipping cost for the purchased spare parts amounting $700 was paid in cash. On March 10, damaged spare parts amounting $2000 were returned to Abdul Latif-Jameel Service Center for credit discount. The fair/cost of these damaged spare parts is $500. On March 5, Shaker store paid the due amount to Abdul Latif-Jameel Service Center in full, less the credit discount. . Both businesses, Shaker store and the Service Center using perpetual inventory system. Based the above information, the journal entry to be recorded in Abdul Latif-Jameel Service Center's books on March 3 is: Select one: a. Non of the above b. Inventory account is debited by 5700 and Cash account is credited by 5700 c. Inventory account is debited by 700 and Account Payable account is credited by 700 d. Inventory account is debited by 700 and Cash account is credited by 700 The following transactions belongs to Shaker auto spare parts store in Riyadh & Abdul Latif-Jameel Service Center in Jeddah: On March 1, Shaker store purchased $10,000 of auto spare parts from Abdul Latif-Jameel Service Center, FOB shipping point, terms 10/7/30. These spare parts had cost Abdul Latif-Jameel Service Center $5700. On March 3 The transportation/shipping cost for the purchased spare parts amounting $700 was paid in cash. On March 10, damaged spare parts amounting $2000 were returned to Abdul Latif-Jameel Service Center for credit discount. The fair/cost of these damaged spare parts is $500. On March 5, Shaker store paid the due amount to Abdul Latif-Jameel Service Center in full, less the credit discount. Both businesses, Shaker store and the Service Center using perpetual inventory system. Based the above information, the journal entry to be recorded in Shaker store's books on March 10 is: Select one: a. Account Payable account is debited by 2000 and Inventory account is credited by 2000 b. Inventory account is debited by 500 and Account Payable account is credited by 500 c. Inventory account is debited by 2000 and Account Payable account is credited by 2000 d. Account Payable account is debited by 500 and Inventory account is credited by 500 Based the above information, the journal entry to be recorded in Abdul Latif-Jameel Service Center's books on March 5 is: Select one: O a. Cash is debited by 8000 and Sales discounts is credited by 800 and Account Receivable account is credited by 7200 b. Cash is debited by 7200 & Sales discounts is debited 800 and Account Receivable account is credited by 8000 C, Account Payable is debited by 7200 and Inventory account is debited by 800 & Cash account is credited by 8000 d. Account Payable is debited by 8000 and Inventory account is credited by 800 & Cash account is credited by 7200 If the beginning inventory in a retail company is $50,000, cost of goods purchased is $50,000, and ending inventory is $50,000, what is cost of goods sold under a periodic system for this company? Select one: a. $100,000 b. O c. $150,000 d. $50,000 Giving the financial information presented below: Operating expenses $ 70,000 Sales returns and allowances 5,000 Sales discounts 5,000 Sales revenue 100,000 Cost of goods sold 90,000 What is the gross profit for this company? Select one: a. $20,000 b. O c. $50,000 d. $70,000
