Question 19 Under a perpetual inventory system, acquisition of merchandise for resale is debited to the A Merchandise Inventory account. (B) Purchases account. (C) Supplies account (D) Cost of Goods Sold account. 1 Point Question 20 1 Point Which of the following terms represents the deduction from the invoice price of purchased goods granted by the supplier for early payment? Trade discount Purchase allowance (C) Purchase discount (D) Sales discount Question 21 LoL Store purchased merchandise with a list price of P200,000 and got a trade discount of P4,000. The accountant should: Debit Purchase discounts for P4,000, and debit Purchases for P196,000 Debit Purchase discounts for P4,000, and debit Accounts payable for P196,000 Debit Purchases for P200,000 Debit Purchases for P196,000 Question 22 When recording a cash sale on the perpetual inventory system, which of the following two accounts are debited? A Cash and inventory B Sales and inventory (C) Sales and cost of goods sold (D) Cash and cost of goods sold 1 Point Question 23 Statement Purchase discount account is used under the gross method. Statement II. Administrative expenses can be further divided into selling expenses and operating expenses. A Both Statements are TRUE B Both Statements are FALSE C Only Statement is TRUE (D) Only Statement is TRUE 1 Point Question 24 1 Point If a company has net sales of Php 546,000 and cost of goods sold of Php 350,000, the mark-up percentage based on cost is A 64.10% (B) 56.00% (C) 35.90% (D) 100% 1 Point