Question 15:

What is gross profit for a merchandiser calculated as?

Group of answer choices

net sales minus cost of goods sold

gross sales minus cost of goods sold

net sales minus merchandise inventory

gross sales minus merchandise inventory

Question 16:

On August 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 August 12?

Group of answer choices

$1,000

$998

$990

$980

Question 17:

Our company purchases $4,000 worth of merchandise inventory on credit with the terms 2/10, n/30. Transportation costs were an additional $300. Our company returned $200 worth of merchandise. What is the total cost of this merchandise if our company paid the invoice within the discount period?

Group of answer choices

$3,424

$3,822

$4,024

$4,410

Question 18:

Our company uses a perpetual inventory system. On July 3, we sold merchandise with a cost of $3,000 for $6,500 to a customer on account. The terms of the sale were 2/10, n/30. What account and amount would we credit to record the sales revenue for this transaction?

Group of answer choices

sales revenue, $6,500

merchandise inventory, $3,000

cost of goods sold, $3,000

accounts receivable, $6,500

Question 19:

Our company uses a perpetual inventory system. On July 3, we sold merchandise with a cost of $3,000 for $6,500 to a customer on account. The terms of the sale were 2/10, n/30. What account and amount would we credit to record the cost of goods sold for this transaction?

Group of answer choices

sales revenue, $6,500

merchandise inventory, $3,000

cost of goods sold, $3,000

accounts receivable, $6,500

Question 20:

Our company had the following balances and transactions during the current year related to merchandise inventory.

Beginning merchandise inventory on January 1	120 units at $70 per unit
Purchase on February 14	100 units at $85 per unit
Sale on August 21	150 units

What would be the companys ending merchandise inventory in dollars on December 31 if the company used perpetual, last in, first out (LIFO) method?

Group of answer choices

$4,900

$5,950

$10,950

$12,000