Question
Washington Warehouse is a small retail business that specializes in the sale of top-of-the-line televisions. This year, the store has begun to carry the Flat
Washington Warehouse is a small retail business that specializes in the sale of top-of-the-line televisions. This year, the store has begun to carry the Flat TV manufactured by Bass Co. Thus far, Washington has recorded the following transactions involving the Flat TV:
Jan. | 5 | Purchased 8 Flat TVs at a unit cost of $1,400 | |
Jan. | 18 | Purchased 5 additional Flat TVs at $1,400 each | |
Feb. | 12 | Sold 9 Flat TVs to the Duke Hotel for $15,300 |
If Washington uses a perpetual inventory system, the journal entry to record the purchase on January 18th would include which of the following?
Multiple Choice
A debit to Inventory for $7,000.
A credit to Inventory for $7,000.
A debit to the Cost of Goods Sold for $7,000.
A debit to the Purchases account for $7,000.
If Washington uses a perpetual inventory system, the gross profit on the Flat TVs as of February 12th is:
Multiple Choice
$11,200.
$2,700.
$15,300.
$4,100.
If Washington uses a perpetual inventory system, the journal entry to record the sale on February 12th would include all of the following except:
rev: 04_19_2019_QC_CS-166574
Multiple Choice
A credit to Inventory for $12,600.
A credit to Purchases for $15,300.
A debit to the Cost of Goods Sold for $12,600.
A credit to Sales Revenue for $15,300.
Washington maintains a subsidiary ledger account for each type of TV carried in the store. An examination of the account for the Flat TV model at the end of February would show:
Multiple Choice
The amount that Washington owes to Bass.
13 units on hand with a total value of $18,200.
4 units on hand with a total value of $5,600.
4 units on hand with a total value of $1,400.
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