Question 1 4 pts Net sales for a merchandiser is calculated as: gross sales sales returns and allowances sales discounts gross sales cost of goods sold net sales sales returns and allowances sales discounts gross sales merchandise inventory

Question 2 4 pts Which of the following would we debit to record the purchase of merchandise inventory on account if the company uses a perpetual inventory system? purchases cash accounts payable merchandise inventory

Question 3 4 pts On April 1, our company purchases $1,000 worth of merchandise inventory on credit with the terms 2/10, n/30. What is the amount we would credit to cash if we pay this invoice on April 9? $1,000 $998 $990 $980

Question 4 4 pts Under the perpetual inventory system, discounts taken on an invoice by the buyer are: debited to merchandise inventory credited to merchandise inventory debited to cost of goods sold credited to cost of goods sold

Question 5 4 pts Our company sold merchandise on account with a cost of $700 for $1,000. Our company uses a perpetual inventory system. What account and amount would we debit to record the sales revenue? accounts receivable, $1,000 sales, $1,000 merchandise inventory, $700 cost of goods sold, $700

Question 6 4 pts What account would we debit when a company ships merchandise it has sold to a customer and pays for the transportation costs? merchandise inventory freight out freight in cost of goods sold

Question 7 4 pts What is the loss of inventory that occurs because of theft, damage, and errors? loss of market value shrinkage inventory loss expense inventory error expense

Question 8 4 pts In a period of rising costs, which inventory method results in highest cost of goods sold and lowest gross profit? first in, first out (FIFO) last in, first out (LIFO) weighted-average periodic

Question 9 4 pts The two main inventory accounting systems are: FIFO and LIFO perpetual and periodic cash method and accrual method weighted-average and specific identification

Question 10 4 pts A company purchased 10 units for $5 on January 3. It purchased 10 units for $7 each on February 28. It sold 10 units on March 1. If the company uses the weighted-average inventory costing method, what is the dollar amount for ending inventory on the December 31 balance sheet, assuming that the company uses a perpetual inventory system? $50 $60 $70 $120