Which of the following is one of the entries made by a company using a perpetual inventory system for selling its inventory on credit?

A.

Cost of Goods Sold

Inventory

B.

Purchases

Accounts Payable

C.

Inventory

Cost of Goods Sold

D.

Inventory

Sales

E.

Sales

Accounts Receivable

1.5 points

QUESTION 12

Opera Corporation began the year with $8,000 in inventory. During the year, Opera purchased $23,000 in inventory. An end of the year count showed $6,000 in inventory. What is Opera cost of goods sold for the year?

	A.	$21,000
	B.	$15,000
	C.	$23,000
	D.	$8,000
	E.	$25,000

1.5 points

QUESTION 13

Tim-Tom Corporation receives an invoice stating that the company will receive 1 percent discount if it pays within ten days. If the company is unable to pay within ten days, Tim-Tom has to pay the full amount within 35 days from invoice date. Which of the following clearly indicates the above terms on the invoice received by Tim-Tom?

	A.	10/1 n/35
	B.	35/10 n/1
	C.	2/10 n/45
	D.	1/10 n/35
	E.	10/2 n/35

1.5 points

QUESTION 14

Red Click Inc. had a beginning inventory balance of $200,000. During the year, the company purchased $903,000 of inventory. Sales for the period amounted to $980,000. The ending inventory count showed $210,000 in inventory.. What is the gross profit of Red Click for the year?

	A.	$87,000
	B.	$67,000
	C.	$297,000
	D.	$77,000
	E.	$123,000

1.5 points

QUESTION 15

Which of the following is the journal entry made by a company using perpetual inventory system to record the purchase of inventory?

A.

Purchases

Accounts Payable

B.

Inventory

Purchases

C.

Inventory

Accounts Payable

D.

Accounts Payable

Inventory

E.

Purchases

Inventory