Which of the following formulas is incorrect? sales - cost of goods sold = gross profit sales - gross profit = cost of goods sold operating expenses - cost of goods sold = gross profit gross profit - operating expenses = income from operations Current Attempt in Progress Refund Liability is a(n) contra asset account. asset account. deferred revenue account. expense account. On July 10 , Bramble Inc. purchased $4800 of inventory on terms of 3/10,n/30. The amount due in August is $4790.$4800.$4944.$4656. The profit margin would be 44.2%. 15.3%. 22.2%. 55.8%. To record the cash sale of $85,000 of merchandise that costs $45,000 and includes an expected return rate of 3%, which of the following journal entry(ies) are required in a perpetual inventory system? first entry: debit Cash, $85,000; credit Sales, $82,450 and credit Refund Liability $2,550; second entry: debit Cost of Goods Sold, $43,650, debit Estimated Inventory Returns $1,350; credit Inventory, $45,000 debit Cash, \$45,000; credit Inventory, \$43,650 and credit Estimated Inventory Returns \$1,350 debit Cash, $85,000; credit Sales, $82,450 and credit Refund Liability $2,550 first entry: debit Cash, $45,000; credit Sales, $45,000; second entry: debit Cost of Goods Sold, $45,000; credit Inventory, $45,000 Under the perpetual inventory system when a company does not anticipate or estimate any returns, in addition to making the entry to record the sale, the seller would debit Cost of Goods Sold and credit Inventory. debit Cost of Goods Sold and credit Purchases. debit Inventory and credit Cost of Goods Sold. make no additional entry until the end of the period. When a buyer purchases inventory, the buyer always pays the freight. buyer never pays the freight when the shipping terms are FOB destination. seller never pays the freight. seller always pays the freight when the shipping terms are FOB shipping point. A company using a perpetual inventory system that returns goods purchased on credit would debit Sales and credit Accounts Payable. debit Accounts Payable and credit Inventory. debit Cash and credit Accounts Payable. debit Accounts Payable and credit Purchases. The primary difference between a periodic and a perpetual inventory system is that a periodic system provides better control over inventories. determines the cost of goods sold at the end of the accounting period. keeps a detailed record showing the inventory on hand at all times. records the cost of goods sold on the date the sale is made. The operating cycle of a merchandising company is always one year in length. generally shorter than that of a service company. generally longer than that of a service company. about the same as that of a service company

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Which of the following formulas is incorrect? sales - cost of goods sold = gross profit sales - gross profit = cost of goods sold operating expenses - cost of goods sold = gross profit gross profit - operating expenses = income from operations Current Attempt in Progress Refund Liability is a(n) contra asset account. asset account. deferred revenue account. expense account. On July 10 , Bramble Inc. purchased $4800 of inventory on terms of 3/10,n/30. The amount due in August is $4790.$4800.$4944.$4656. The profit margin would be 44.2%. 15.3%. 22.2%. 55.8%. To record the cash sale of $85,000 of merchandise that costs $45,000 and includes an expected return rate of 3%, which of the following journal entry(ies) are required in a perpetual inventory system? first entry: debit Cash, $85,000; credit Sales, $82,450 and credit Refund Liability $2,550; second entry: debit Cost of Goods Sold, $43,650, debit Estimated Inventory Returns $1,350; credit Inventory, $45,000 debit Cash, \$45,000; credit Inventory, \$43,650 and credit Estimated Inventory Returns \$1,350 debit Cash, $85,000; credit Sales, $82,450 and credit Refund Liability $2,550 first entry: debit Cash, $45,000; credit Sales, $45,000; second entry: debit Cost of Goods Sold, $45,000; credit Inventory, $45,000 Under the perpetual inventory system when a company does not anticipate or estimate any returns, in addition to making the entry to record the sale, the seller would debit Cost of Goods Sold and credit Inventory. debit Cost of Goods Sold and credit Purchases. debit Inventory and credit Cost of Goods Sold. make no additional entry until the end of the period. When a buyer purchases inventory, the buyer always pays the freight. buyer never pays the freight when the shipping terms are FOB destination. seller never pays the freight. seller always pays the freight when the shipping terms are FOB shipping point. A company using a perpetual inventory system that returns goods purchased on credit would debit Sales and credit Accounts Payable. debit Accounts Payable and credit Inventory. debit Cash and credit Accounts Payable. debit Accounts Payable and credit Purchases. The primary difference between a periodic and a perpetual inventory system is that a periodic system provides better control over inventories. determines the cost of goods sold at the end of the accounting period. keeps a detailed record showing the inventory on hand at all times. records the cost of goods sold on the date the sale is made. The operating cycle of a merchandising company is always one year in length. generally shorter than that of a service company. generally longer than that of a service company. about the same as that of a service company