1. The retained earnings statement shows

	net income, dividends, and beginning and ending retained earnings
	total assets and beginning and ending retained earnings
	net income and ending retained earnings only

2. Which of the following accounts has a normal debit balance?

	Accounts Payable
	Sales Returns and Allowances
	Sales
	Interest Revenue

3. In credit terms of 3/15, n/45, the "45" represents the

	full amount of the invoice
	number of days when the entire amount is due
	percent of the cash discount

4. Merchandise with a sales price of $800 is sold on account. The journal entry to record the sale assuming a periodic inventory system would be

	dr Sales $800 cr Accounts Receivable $800
	dr Accounts Receivable $800 cr Sales $800
	dr Accounts Receivable $800 cr Sales $800 dr COGS $400 cr Inventory $400

5. Using a perpetual inventory system, the entry to record the return of merchandise purchased on account includes a

	dr Inventory cr Purchase Returns and Allowances
	dr Cost of Merchandise Sold (COGS) cr Purchase Returns and Allowances
	dr Accounts Payable cr Inventory