FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 6: Accounting for Merchandising Businesses

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 41

Multiple Choice

Review LaterAdd Note

Review Later

If merchandise sells for $3,500,with terms of 3/15,n/45,and the cost of the inventory sold is $2,100,the amount charged to sales is

A) $3,395
B) $3,500
C) $2,037
D) $2,100

E) B) and D)
F) B) and C)

Correct Answer

verified

Show Answer

Question 42

Essay

Review LaterAdd Note

Review Later

Selected data from the ledger of Burt Co.,after adjustments,on September 30,the end of the fiscal year,are listed as follows:​ Prepare a single-step income statement and a statement of owner's equity.​

Correct Answer

verified

Show Answer

Question 43

Essay

Review LaterAdd Note

Abbey Co.sold merchandise to Gomez Co.on account,$35,000,terms 2/15,net 45.The cost of the merchandise sold is $24,500.Abbey Co.issued a credit memo for $3,600 for merchandise returned that originally cost $1,700.Gomez Co.paid the invoice within the discount period.What is the amount of gross profit earned by Abbey Co.on the above transactions?

Sales to customers who use bank credit cards such as MasterCard and VISA are usually recorded by a

Large businesses that make sales to customers who use credit cards,such as American Express,generally treat these sales as credit sales.

The abbreviation FOB stands for "free on board."

Match each of the following terms (a-h) with the correct definition below. -Statement that includes subtotals for net sales,gross profit,and net operating income in determining net income.

Using the following information,what is the amount of net income?​​

Prepare (a)a single-step income statement, (b)a statement of owner's equity,and (c)a balance sheet in report form from the following data for Burt Co.,taken from the ledger after adjustments on December 31,the end of the fiscal year.​

Using the list of accounts below,construct a chart of accounts for a merchandising business that rents out a portion of its building,and assign account numbers and arrange the accounts in balance sheet and income statement order ("1" for assets,and so on).Each account number should have three digits.Contra accounts should be designated with a decimal of the account (100.1 for contra of account 100).Assets and liabilities should be in order of liquidity; expenses should be in alphabetical order.​

Matching Match each of the following items (a-h) with the appropriate definition below. -Early payment discount offered to customers by the seller.

The chart of accounts for a merchandising business would include an account called Delivery Expense.

A buyer who acquires merchandise under credit terms of 1/10,n/30 has 30 days after the invoice date to take advantage of the sales discount.

Using the perpetual inventory system,journalize the entries for the following selected transactions:

Customer Refunds Payable is an account used to record merchandise returns from customers.

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

Generally,the revenue account for a merchandising business is entitled

Details of a purchase invoice and related credit memo are summarized as follows:​ Assume that the credit memo was received prior to payment and that the invoice is paid within the discount period.Determine the following:

When goods are shipped FOB destination and the seller pays the freight charges,the buyer

Selected accounts and amounts appear below.Journalize the closing entry,assuming a perpetual inventory system.