6. When preparing closing entries under the periodic inventory system, Sales and Purchases Returns and Allowances are both closed in the same entry. (1 Point) True False 7. FOB Shipping point means that the seller incurs the shipping costs. (1 Point) True

6. When preparing closing entries under the periodic inventory system, Sales and Purchases Returns and Allowances are both closed in the same entry. (1 Point) True False 7. FOB Shipping point means that the seller incurs the shipping costs. (1 Point) True

Name: Purchases Returns and AllowancesAll of these.6. When preparing closin
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Description: Purchases Returns and AllowancesAll of these.6. When preparing closing entries under the periodic inventory system, Sales andPurchases Returns and Allowances are both closed in the same entry.(1Point)TrueO False7. FOB Shipping point means that the s

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Under the perpetual inventory system, in addition to making the entry to record a sale, a company would a. Debit Merchandise Inventory and Credit to Cost of Goods Sold. b. Debit to Cost of Goods Sold and credit to Merchandise Inventory c. Deb it to Cost of Goods Sold and credit to purchases d. No entry
5. Shipments of inventory to the branch may be billed at other than cost. When billing prices are above cost, the unrealized mark-up is initially recorded by the home office a, in an "allowance" account. b. as a credit to investment in branch account. c. as an addition to the cost of "shipments to branch." d. a and c
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19) The inventory system which do not use merchandise inventory account and reduces the record keeping of a merchandise business is described as ___________________________. a. Perpetual Inventory system b. None c. Periodic inventory system d. Both perpetual and periodic inventory system
When the buyer pays the freight costs, the entry to record the payment under a perpetual inventory system would include a debit to _______. Question content area bottom Part 1 A. Freight In B. Inventory C. Purchases Discounts D. Delivery Expense
What is the treatment of the following items in connection with the retail inventory method? g. Sales return h. Employee discount i. Normal and abnormal shortage, shrinkage, spoilage and breakage
Q-1: What is Perpetual and Periodic Inventory System? Explain the differences between both. Record all the transactional entries for the sales and purchases of inventory.
Petco Inc. uses the periodic inventory system. Assess the effect on net income of including goods in transit f.o.b shipping point in purchases, but not in ending inventory. a. Overstate net income. b. No effect on net income. O c. Not sufficient information is provided to assess the effect on net income. O d. Understate net income.
Which of the following statements is true for a company that uses a periodic inventory system? a.The purchase of inventory requires a debit to Inventory. b.The return of defective inventory requires a debit to Purchase Returns and Allowances. c.The payment of a purchase within the discount period requires a credit to Purchase Discounts. d.Any amounts paid for freight are debited to Inventory.