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 71

Multiple Choice

Review LaterAdd Note

Review Later

Match each of the following terms (a-h) with the correct definition below. -Inventory system that updates the merchandise inventory account only at the end of the accounting period based on a physical count of merchandise on hand.

A) Credit terms
B) FOB destination
C) FOB shipping point
D) Periodic inventory system
E) Perpetual inventory system
F) Inventory shrinkage
G) Single-step income statement
H) Multiple-step income statement

I) D) and H)
J) B) and F)

Correct Answer

verified

Show Answer

Question 72

Essay

Review LaterAdd Note

Review Later

Using the following data taken from Hsu's Imports Inc.which uses a periodic inventory system,determine the gross profit to be reported on the income statement for the year ended March 31.​

Correct Answer

verified

Gross Profit = Sales...

View Answer

Show Answer

Question 73

Multiple Choice

Review LaterAdd Note

Match each of the following terms (a-h) with the correct definition below. -Inventory system that updates the merchandise inventory account for every purchase and sales transaction.

Conquest Company uses a perpetual inventory system.Conquest purchased $1,500 of merchandise on account and payment was made within the discount period.The credit terms were 2/10,n/30.Journalize Conquest's purchase and payment.

On March 4,Micro Sales makes $4,850 in sales on bank credit cards that charge a 2.5% service charge and deposits the funds into Micro Sales' bank accounts at the end of the business day.Journalize the sales and recognition of expense as a single journal entry.

When merchandise that was sold is returned,a credit to sales returns and allowances is made.

Which of the following items would not affect the cost of merchandise inventory acquired during the period?

A sales discount encourages customers to pay accounts more quickly than if a discount were not available.

Bradford Company had sales of $700,000 for the year.The total assets at the beginning of the year were $240,000,and the total assets at the end of the year were $280,000.The ratio of sales to total assets is (round answer to two decimal places)

Which of the following accounts would be included in the chart of accounts of a merchandising company using the (a)periodic inventory system, (b)perpetual inventory system,or (c)both systems?​ (1)Purchases (2)Merchandise Inventory (3)Sales (4)Purchases Discounts (5)Cost of Merchandise Sold (6)Freight In (7)Delivery Expense

When merchandise is sold for $600 plus a 6% sales tax,the sales account should be credited for $636.

Using a perpetual inventory system,the entry to record the sale of merchandise on account includes a

Most retailers record all credit card sales as credit sales.

What type of company would normally offer trade discounts to its customers?

If payment is due by the end of the month in which the sale is made,the invoice terms are expressed as n/30.

Freight is the amount paid by the seller to deliver merchandise sold to a customer under FOB shipping point.

Which account will be included in closing entries of both service and merchandising companies?

Sellers and buyers are required to record trade discounts.

The fees associated with credit card sales are periodically recorded as expenses.

The statement of owner's equity shows