1. Norfolk Sporting Goods purchases merchandise with a catalog list price of $30,000. The retailer receives a 30% trade discount and credit terms of 2/10, n/30. What amount should Norfolk debit to the Inventory account? A. $29,400 B. $20,580 C. $21,000 D. $30,000 2. Who is responsible for the freight cost when the terms are FOB destination? A. the seller B. the buyer C. either the buyer or the seller D. the ultimate customer 3. Which of the following methods is appropriate for a business whose inventory consists of a relatively small number of unique, high-cost items? A. specific identification
1. Norfolk Sporting Goods purchases merchandise with a catalog list price of $30,000. The retailer receives a 30% trade discount and credit terms of 2/10, n/30. What amount should Norfolk debit to the Inventory account? A. $29,400 B. $20,580 C. $21,000 D. $30,000 2. Who is responsible for the freight cost when the terms are FOB destination? A. the seller B. the buyer C. either the buyer or the seller D. the ultimate customer 3. Which of the following methods is appropriate for a business whose inventory consists of a relatively small number of unique, high-cost items? A. specific identification
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 26MC: A customer returns $690 worth of merchandise and receives a full refund. What accounts recognize...
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1. Norfolk Sporting Goods purchases merchandise with a catalog list price of $30,000. The retailer receives a 30% trade discount and credit terms of 2/10, n/30. What amount should Norfolk debit to the Inventory account?
A. $29,400
B. $20,580
C. $21,000
D. $30,000
2. Who is responsible for the freight cost when the terms are FOB destination?
A. the seller
B. the buyer
C. either the buyer or the seller
D. the ultimate customer
3. Which of the following methods is appropriate for a business whose inventory consists of a relatively small number of unique, high-cost items?
A. specific identification
B. LIFO
C. average
D. FIFO
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