In recording the cost of merchandise sold for cash using a perpetual inventory system, the effect on the accounts is: Oa. increase Accounts Receivable; decrease Merchandise Inventory. Ob. increase Merchandise Inventory; decrease Cost of Merchandise Sold. Oc. increase Cost of Merchandise Sold; decrease Merchandise Inventory. Od. increase Cost of Merchandise Sold; increase Cash.

In recording the cost of merchandise sold for cash using a perpetual inventory system, the effect on the accounts is: Oa. increase Accounts Receivable; decrease Merchandise Inventory. Ob. increase Merchandise Inventory; decrease Cost of Merchandise Sold. Oc. increase Cost of Merchandise Sold; decrease Merchandise Inventory. Od. increase Cost of Merchandise Sold; increase Cash.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter9: Sales And Purchases

Section: Chapter Questions

Problem 1QY: Which of the following is true about the Sales Returns and Allowances account? a. It is used to...

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Which of the following is true about the Sales Returns and Allowances account? a. It is used to record the sale of merchandise. b. It is used to record the reduction of inventory. c. It is a contra account, deducted from sales. d. It is used to record discounts for prompt payment. e. None of the above.
The difference between merchandise available for sale and the end-of-period merchandise inventory is called (a) gross profit. (b) net purchases. (c) net sales. (d) cost of goods sold.
If a customer purchases merchandise on credit and returns the defective merchandise before payment, what accounts would recognize this transaction? A. sales discount, cash B. sales returns and allowances, cash C. accounts receivable, sales discount D. accounts receivable, sales returns and allowances
What is the normal balance for each of the following accounts: (a) Purchases? (b) Sales Discounts? (c) Purchases Returns and Allowances? (d) Sales? (e) Purchases Discounts? (f) Sales Returns and Allowances?
When merchandise is bought for resale, which of the following accounts would be increased? A. Accounts Payable B. Supplies Expense C. Store Equipment D. Merchandise Inventory
Using a perpetual inventory system, the return to their supplier of merchandise purchased on account includes a(n) _____. a.increase in Merchandise Inventory b.decrease in Merchandise Inventory c.increase in Sales d.decrease in Sales
In recording the cost of merchandise sold for cash, based on data available from perpetual inventory records, the journal entry is a )a. debit to Cost of Merchandise Sold and a credit to Sales Ob. debit to Cost of Merchandise Sold and a credit to Merchandise Inventory )c. debit to Merchandise Inventory and a credit to Cost of Merchandise Sold )d. debit to Accounts Receivable and a credit to Merchandise Inventory
In a perpetual system, what would be the journal entry for a sales return. (a) Dr. Sales return and allowance Cr. Account receivable (b) Dr. sales Cr. Account receivable (c) Dr. Sales Cr. Merchandise inventory (d) Dr. Sales return and allowance Merchendise inventory Cr. Account receivable Cost of good solds
Using a perpetual inventory system, the sale of inventory on account would be recorded as a. Debit Cost of Goods Sold; credit Inventory. b. Debit Inventory; credit Sales Revenue. c. Debit Accounts Receivable; credit Sales Revenue. d. Both a. and c. are correct.
If a customer purchases merchandise on credit and return the defective merchandise before payment, what accounts would recognize this transaction? Assume the perpetual inventory system is used. A.Sales Discount, Cash B.Accounts Receivable, Sales Discount C.Sales Returns and Allowances, Cash D.Accounts Receivable, Sales Returns and Allowances
Which account balance is NOT used to compute the cost of goods sold? a.Merchandise Inventory b.Purchases c.Sales d.Purchases Discounts
a. Added to other income. whether taken or not b. Added to other income, only if taken Deducted from inventory, whether taken or not d. Deducted from inventory, only if taken C. accounted for in the computation of cost of goods sold? a. Trade discounts applicable to purchases b. Cash discounts taken- c. Purchase returns and allowances d. Cost of transportation for merchandise purchased 3. The use of purchase discount account implies that the recorded cost of a purchased inventory is a. Invoice price b. Invoice price plus any purchase discount lost c. Invoice price less the purchase discount taken d. Invoice price less the purchase discount allowable whether taken or not 4. The use of a discount lost account implies that cost of a purchased inventory is a. Invoice price b. List price c. Invoice price less the purchase discount taken d. Invoice price less the purchase discount allowable whether or not taken 5. The valuation of inventory on a prime cost basis a. Would achieve the same…