Which of the following accounts will not be found in the cost of merchandise sold section of the income statement for a company using the periodic inventory method?Oa. Selling ExpenseOb. PurchasesOc. Merchandise InventoryOd. Freight In

Income statement: The income statement is a financial statement that shows the net income earned or…

Answered: Which of the following accounts will…

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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When using the periodic inventory system, which of the following generally would not be separately accounted for in the computation of cost of goods sold? A) trade discounts applicable to purchases during the period B) Cash (purchase) discounts taken during the period. C) Purchase returns and allowances of merchandise during the period. D) Cost of freight-in for merchandise purchased during the period.
Assume that a perpetual inventory system using the NET METHOD is in use. Which of the following statements regarding the journal entries prepared is correct? A) When a customer returns inventory, the seller debits Customer Refunds Payable. B) Shipping costs associated with sales with terms FOB, destination should be included in Cost of Merchandise Inventory. C) When a company receives payment from a customer for a sale, Cash is debited and Accounts Payable is credited. D) When a company sells merchandise with terms 2/10, n 30, the company will credit Merchandise Inventory for the amount of the discount of 2 percent of sales. Why is the answer A and not D?
Which of the following is incorrect about the perpetual inventory method? a. purchases are recorded as debit to inventory accountb. the entry to record a sale includes a debit to cost of goods sold and a credit to inventoryc. after a physical inventory count, inventory is credited for any missing inventory.d. purchase returns are recorded by debiting accounts payable and crediting purchase returns and allowances
When a company that uses the periodic inventory system wants to remove beginning estimated returns inventory, which of the following accounts is debited? a.Estimated Returns Inventory b.Cost of Goods Sold c.Customer Refunds Payable d.Income Summary
The amount shown in the adjustments credit column for Merchandise Inventory on the worksheet is: A.Cost of Goods Sold. B.total purchases. C.ending inventory. D.beginning inventory.
pp. Subject :- Accounting
Under the perpetual inventory system, which of the following accounts is credited in the adjusting entry to reflect the expected amount of merchandise that will be returned? a. Merchandise Inventory b. Cost of Goods Sold c. Sales Returns and Allowances d. Estimated Returns Inventory
1.Complete the applicable inventory record card, and calculate cost of goods sold and the cost of ending inventory under each of the following inventory cost flow assumptions: a. FIFO b. LIFO c. Specific identification d. Weighted average. 2. Prepare the journal entries required to record purchases and sales using the FIFO inventory cost flow assumption. Descriptions are not necessary. 3. Refer to the "Compare" page. Calculate the sum of cost of goods sold and ending inventory balances under each of the four inventory cost flow assumptions. Explain the results.…
Which inventory system records both sales and cost of goods sold at the point of sale? Group of answer choices Periodic LIFO Perpetual FIFO
What is the correct entry to write off the inventory under perpetual method? Dr. Cost of Goods sold Cr. Inventory Account B Dr. Sales Cr. Cost of Goods sold © Dr. Sales Cr. Inventory Account Dr. Inventory Account Cr. Cost of Goods sold
In recording the cost of goods sold based on data available from perpetual inventory records, the journal entry is a a. debit to Merchandise Inventory and a credit to Cost of Merchandise Sold b. debit to Accounts Receivable and a credit to Merchandise Inventory . debit to Cost of Merchandise Sold and a credit to Sales d. debit to Cost of Merchandise Sold and a credit to Merchandise Inventory
31. Under a perpetual inventory system, a.a physical count is required to determine cost of merchandise on hand b.increases in inventory resulting from purchases are debited to Purchases c.accounting records continuously disclose the amount of inventory d.the purchases returns and allowances account is credited when goods are returned to vendors

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Which of the following accounts will not be found in the cost of merchandise sold section of the income statement for a company using the periodic inventory method? Oa. Selling Expense Ob. Purchases Oc. Merchandise Inventory Od. Freight In