Sales Revenue Sales Discount Sales Return&Allowance Salaries Expenses Cost of Goods Sold Rent & Insurance Expenses Gain on Sales of Land Interest Expense $280,000 18,000 12,000 20,000 40,000 10,000 35,000 5,000 20,000 4,000 6,000 25,000 15,000 Purchase Purchase Discount Purchase Return&Allowance Beginning Inventory Ending Inventory 1. What are the contra accounts to sales? 2. What are the primary categories of expenses in a Merchandise Company? 3. What does F.O.B mean? Briefly explain F.O.B shipping point. Briefly explain F.O.B destination. Inventory in a Merchandise Company is considered an intangible asset? True or False (if False why) 4. 5. 6. 7. What would be the odjustment jounali an for the following ABC perpetual inventory is $25,510 while the physical count shows $28,810? Under the perpetual method of accounting, what would be the journal(s) typical to record a sales transaction? 8. 9. Why would companies offer a discount? 10. Under Discount terminology what does 1/10, n/30 means