1 Role Of Accounting In Society 2 Introduction To Financial Statements 3 Analyzing And Recording Transactions 4 The Adjustment Process 5 Completing The Accounting Cycle 6 Merchandising Transactions 7 Accounting Information Systems 8 Fraud, Internal Controls, And Cash 9 Accounting For Receivables 10 Inventory 11 Long-term Assets 12 Current Liabilities 13 Long-term Liabilities 14 Corporation Accounting 15 Partnership Accounting 16 Statement Of Cash Flows Chapter6: Merchandising Transactions
Chapter Questions Section: Chapter Questions
Problem 1MC: Which of the following is an example of a contra revenue account? A. sales B. merchandise inventory... Problem 2MC: What accounts are used to recognize a retailers purchase from a manufacturer on credit? A. accounts... Problem 3MC: Which of the following numbers represents the discount percentage applied if a customer pays within... Problem 4MC: If a customer purchases merchandise on credit and returns the defective merchandise before payment,... Problem 5MC: Which of the following is a disadvantage of the perpetual inventory system? A. Inventory information... Problem 6MC: Which of the following is an advantage of the periodic inventory system? A. frequent physical... Problem 7MC: Which of the following is not a reason for the physical inventory count to differ from what is... Problem 8MC: Which of the following is not included when computing Net Purchases? A. purchase discounts B.... Problem 9MC: Which of the following accounts are used when recording a purchase? A. cash, merchandise inventory... Problem 10MC: A retailer pays on credit for $650 worth of inventory, terms 3/10, n/40. If the merchandiser pays... Problem 11MC: A retailer returns $400 worth of inventory to a manufacturer and receives a full refund. What... Problem 12MC: A retailer obtains a purchase allowance from the manufacturer in the amount of $600 for faulty... Problem 13MC: Which of the following accounts are used when recording the sales entry of a sale on credit? A.... Problem 14MC: A customer pays on credit for $1,250 worth of merchandise, terms 4/15, n/30. If the customer pays... Problem 15MC: A customer returns $870 worth of merchandise and receives a full refund. What accounts recognize... Problem 16MC: A customer obtains a purchase allowance from the retailer in the amount of $220 for damaged... Problem 17MC: Which of the following is not a characteristic of FOB Destination? A. The seller pays for shipping.... Problem 18MC: Which two accounts are used to recognize shipping charges for a buyer, assuming the buyer purchases... Problem 19MC: Which of the following is not a characteristic of FOB Shipping Point? A. The buyer pays for... Problem 20MC: A multi-step income statement ________. A. separates cost of goods sold from operating expenses B.... Problem 21MC: Which of the following accounts would be reported under operating expenses on a multi-step income... Problem 22MC: A simple income statement ________. A. combines all revenues into one category B. does not combine... Problem 23MC: Which of the following accounts would not be reported under revenue on a simple income statement? A.... Problem 24MC: Which of the following accounts are used when recording a purchase using a periodic inventory... Problem 25MC: A retailer obtains a purchase allowance from the manufacturer in the amount of $600 for faulty... Problem 26MC: A customer returns $690 worth of merchandise and receives a full refund. What accounts recognize... Problem 27MC: A customer obtains an allowance from the retailer in the amount of $450 for damaged merchandise.... Problem 1Q: What are some benefits to a retailer for offering a discount to a customer? Problem 2Q: What do credit terms of 4/10, n/30 mean in regard to a purchase? Problem 3Q: What is the difference between a sales return and a sales allowance? Problem 4Q: If a retailer made a purchase in the amount of $350 with credit terms of 2/15, n/60. What would the... Problem 5Q: What are two advantages and disadvantages of the perpetual inventory system? Problem 6Q: What are two advantages and disadvantages of the periodic inventory system? Problem 7Q: Sunrise Flowers sells flowers to a customer on credit for $130 on October 18, with a cost of sale to... Problem 8Q: Sunrise Flowers sells flowers to a customer on credit for $130 on October 18, with a cost of sale to... Problem 9Q: Name two situations where cash would be remitted to a retailer from a manufacturer after purchase. Problem 10Q: If a retailer purchased inventory in the amount of $750, terms 2/10, n/60, returned $30 of the... Problem 11Q: A retailer discovers that 50% of the total inventory items delivered from the manufacturer are... Problem 12Q: Name two situations where cash would be remitted to a customer from a retailer after purchase. Problem 13Q: If a customer purchased merchandise in the amount of $340, terms 3/10, n/30, returned $70 of the... Problem 14Q: A customer discovers 60% of the total merchandise delivered from a retailer is damaged. The original... Problem 15Q: What are the main differences between FOB Destination and FOB Shipping Point? Problem 16Q: A buyer purchases $250 worth of goods on credit from a seller. Shipping charges are $50. The terms... Problem 17Q: A seller sells $800 worth of goods on credit to a customer, with a cost to the seller of $300.... Problem 18Q: Which statement and where on the statement is freight-out recorded? Why is it recorded there? Problem 19Q: The following is select account information for Sunrise Motors. Sales: $256,400; Sales Returns and... Problem 20Q: What is the difference between a multi-step and simple income statement? Problem 21Q: How can an investor or lender use the Gross Profit Margin Ratio to make financial contribution... Problem 22Q: The following is select account information for August Sundries. Sales: $850,360; Sales Returns and... Problem 23Q: If a retailer purchased inventory in the amount of $680, terms 3/10, n/60, returned $120 of the... Problem 24Q: A customer discovers 50% of the total merchandise delivered from the retailer is damaged. The... Problem 25Q: What is the difference in reporting requirements for customer-returned merchandise in sellable... Problem 1EA: On March 1, Bates Board Shop sells 300 surfboards to a local lifeguard station at a sales price of... Problem 2EA: Marx Corp. purchases 135 fax machines on credit from a manufacturer on April 7 at a price of $250... Problem 3EA: Match each of the following terms with the best corresponding definition. Problem 4EA: The following is selected information from Mars Corp. Compute net purchases, and cost of goods sold... Problem 5EA: On April 5, a customer returns 20 bicycles with a sales price of $250 per bike to Barrio Bikes. Each... Problem 6EA: Record journal entries for the following purchase transactions of Flower Company. Problem 7EA: Record journal entries for the following purchase transactions of Apex Industries. Problem 8EA: Record the journal entry for each of the following transactions. Glow Industries purchases 750... Problem 9EA: Record journal entries for the following sales transactions of Flower Company. Problem 10EA: Record the journal entries for the following sales transactions of Apache Industries. Problem 11EA: Record the journal entry or entries for each of the following sales transactions. Glow Industries... Problem 12EA: Review the following situations and record any necessary journal entries for Mequons Boutique. Problem 13EA: Review the following situations and record any necessary journal entries for Letter Depot. Problem 14EA: Review the following situations and record any necessary journal entries for Nine Lives Inc. Problem 15EA: The following select account data is taken from the records of Reese Industries for 2019. A. Use the... Problem 16EA: Record journal entries for the following purchase transactions of Flower Company. A. On October 13,... Problem 17EA: Record journal entries for the following purchase transactions of Apex Industries. Problem 18EA: Record the journal entries for the following sales transactions of Julian Sundries. Problem 19EA: Record the journal entry or entries for each of the following sales transactions. Glow Industries... Problem 1EB: On June 1, Lupita Candy Supplies sells 1,250 candy buckets to a local school at a sales price of $10... Problem 2EB: Ariel Enterprises purchases 32 cellular telephones on credit from a manufacturer on November 3 at a... Problem 3EB: For each of the following statements, fill in the blanks with the correct account names. A. A... Problem 4EB: The following is selected information from Orange Industries. Compute net purchases, and cost of... Problem 5EB: On April 20, Barrio Bikes purchased 30 bicycles at a cost of $100 per bike. Credit terms were 4/10,... Problem 6EB: Blue Barns purchased 888 gallons of paint at $19 per gallon from a supplier on June 3. Terms of the... Problem 7EB: Canary Lawnmowers purchased 300 lawnmower parts at $3.50 per part from a supplier on December 4.... Problem 8EB: Record journal entries for the following purchase transactions of Balloon Depot. Problem 9EB: Blue Barns sold 136 gallons of paint at $31 per gallon on July 6 to a customer with a cost of $19... Problem 10EB: Canary Lawnmowers sold 70 lawnmower parts at $5.00 per part to a customer on December 4 with a cost... Problem 11EB: Record journal entries for the following sales transactions of Balloon Depot. Problem 12EB: Review the following situations and record any necessary journal entries for Lumber Farm. Problem 13EB: Review the following situations and record any necessary journal entries for Clubs Unlimited. Problem 14EB: Review the following situations and record any necessary journal entries for Wall World. Problem 15EB: The following select account data is taken from the records of Carnival Express for 2019. A. Use the... Problem 16EB: Canary Lawnmowers purchased 300 lawnmower parts at $3.50 per part from a supplier on December 4.... Problem 17EB: Record journal entries for the following purchase transactions of Balloon Depot. Problem 18EB: Canary Lawnmowers sold 75 lawnmower parts at $5.00 per part to a customer on December 4. The cost to... Problem 19EB: Record journal entries for the following sales transactions of Balloon Depot. Problem 1PA: Record journal entries for the following transactions of Furniture Warehouse. A. Aug. 3: Sold 15... Problem 2PA: Record journal entries for the following transactions of Barrera Suppliers. A. May 12: Sold 32... Problem 3PA: Costume Warehouse sells costumes and accessories. Review the following transactions and prepare the... Problem 4PA: Pharmaceutical Supplies sells medical supplies to customers. Review the following transactions and... Problem 5PA: Review the following transactions for Birdy Birdhouses and record any required journal entries. Problem 6PA: Review the following transactions for Dish Mart and record any required journal entries. Note that... Problem 7PA: Review the following sales transactions for Birdy Birdhouses and record any required journal... Problem 8PA: Review the following sales transactions for Dish Mart and record any required journal entries. Note... Problem 9PA: Record the following purchase transactions of Money Office Supplies. Problem 10PA: The following is the adjusted trial balance data for Ninos Pizzeria as of December 31, 2019. A. Use... Problem 11PA: The following is the adjusted trial balance data for Emmas Alterations as of December 31, 2019. A.... Problem 12PA: Review the following transactions for Birdy Birdhouses and record any required journal entries. Problem 13PA: Review the following sales transactions for Dish Mart and record any required journal entries. Note... Problem 1PB: Record journal entries for the following transactions of Furniture Warehouse. A. July 5: Purchased... Problem 2PB: Record journal entries for the following transactions of Mason Suppliers. A. Sep. 8: Purchased 50... Problem 3PB: Costume Warehouse sells costumes and accessories and purchases their merchandise from a... Problem 4PB: Pharmaceutical Supplies sells medical supplies and purchases their merchandise from a manufacturer.... Problem 5PB: Review the following transactions for April Anglers and record any required journal entries. Problem 6PB: Review the following transactions for Dish Mart and record any required journal entries. Note that... Problem 7PB: Review the following sales transactions for April Anglers and record any required journal entries. Problem 8PB: Review the following sales transactions for Dish Mart and record any required journal entries. Note... Problem 9PB: Record the following purchase transactions of Custom Kitchens Inc. Problem 10PB: Record the following sales transactions of Money Office Supplies. Problem 11PB: Record the following sales transactions of Custom Kitchens Inc. Problem 12PB: The following is the adjusted trial balance data for Elm Connections as of December 31, 2019. A. Use... Problem 13PB: Following is the adjusted trial balance data for Garage Parts Unlimited as of December 31, 2019. A.... Problem 14PB: Review the following transactions for April Anglers and record any required journal entries. Problem 15PB: Review the following sales transactions for Dish Mart and record any required journal entries. Note... Problem 1TP: Conduct research on a real-world retailers trade discounts and policies, and discuss the following... Problem 2TP: You have decided to open up a small convenience store in your hometown. As part of the initial... Problem 3TP: You own your own outdoor recreation supply store. You are in the process of drafting a standard... Problem 5TP: You own a clothing store and use a periodic inventory system. Research like companies in the... Problem 24MC: Which of the following accounts are used when recording a purchase using a periodic inventory...
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Concept explainers
The journal entry for the purchase of inventory on account using the perpetual inventory system is
Transcribed Image Text: Date
Accounts and Explanation
Debit
Credit
a.
Merchandise Inventory
XXX
Accounts Receivable
XXX
b.
Accounts Payable
XXX
Merchandise Inventory
XXX
C.
Merchandise Inventory
XXX
Accounts Payable
XXX
d.
Merchandise Inventory
XXX
Cash
XXX
Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.
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