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Accounting
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13 Dec 2019

Which of the following is an account that is shown on the balance sheet for a merchandiser but not on the balance sheet of a service business?

A.Sales Discounts Forfeited

B.UNearned Revenue

c.Estimated Returns Inventory

D.Cost of goods sold

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Jamar Ferry
Jamar FerryLv2
17 Dec 2019
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Related questions

Merchandise inventory can be described as

a. an account appearing on a balance sheet of a merchandiser.

b. products that a company owns and intends to sell.

c. an account increased with a debit.

d. an asset account.

e. All of the above

Ā 

1: A company has a correct $25,000 year-end balance in its SalesDiscount account. Explain what that 25,000 represents.

Is that account closed out at the end of the year?

2: What is the "Operating Cycle" for a merchandiser?

3: Identify 4 accounts that are closed out by a merchandiser buta service business would not have those accounts to close.

1. Inventory is classified on the balance sheet as a

a.current liability

b.long-term asset

c.current asset

d.long-term liability

Ā 

2. What is the term applied to the excess of sales over the cost of goods sold?

a.net income

b.gross profit

c.operations

d.gross sales

Ā 

3. The inventory system employing accounting records that continuously disclose the amount of inventory is called

a.periodic

b.retail

c.perpetual

d.physical

Ā 

4.Ā Calculate the gross profit for Jefferson Company based on the following:

SalesĀ  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  $764,000

Selling ExpensesĀ  Ā  Ā  Ā  Ā $42,500

Cost of Goods SoldĀ  Ā  Ā  $538,000

a.$183,500

b.$721,500

c.$495,500

d.$226,000

Ā 

5.Ā Calculate income from operations for Jonas Company based on the following data:

SalesĀ  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  $764,000

Selling ExpensesĀ  Ā  Ā  Ā  Ā $52,500

Cost of Goods SoldĀ  Ā  Ā  $538,000

a.$226,000

b.$711,500

c.$485,500

d.$173,500

Ā 

6.Ā The primary difference between the periodic and perpetual inventory systems is that a

a.periodic system keeps a record showing the inventory on hand at all times

b.periodic system determines the inventory on hand only at the end of the accounting period

c.periodic system records the cost of the sale on the date the sale is made

d.periodic system provides an easy means to determine inventory shrinkage

Ā 

7. In credit terms of 3/15, n/45, the "3" represents the

a.percent of the cash discount

b.full amount of the invoice

c.number of days when the entire amount is due

d.number of days in the discount period

Ā 

8. Which of the following accounts has a normal credit balance?

a.Inventory

b.Accounts Receivable

c.Sales

d.Delivery Expense

Ā 

9. Using a perpetual inventory system, the entry to record the purchase of $30,000 of merchandise on account would include a

a.debit to Inventory

b.debit to Accounts Payable

c.credit to Sales

d.credit to Inventory

Ā 

10. Which of the following accounts usually has a debit balance?

a.Sales

b.Inventory

c.Accounts Payable

d.Sales Tax Payable

Ā 

11. If title to merchandise purchases passes to the buyer when the goods are shipped from the seller, the terms are

a.n/30

b.consigned

c.FOB shipping point

d.FOB destination

Ā 

12. When goods are shipped FOB destination and the seller pays the freight charges, the buyer

a.does not take a discount

b.journalizes a reduction for the cost of the merchandise

c.makes no journal entry for the freight

d.journalizes a reimbursement to the seller

Ā 

13. When the perpetual inventory system is used, the inventory sold is debited to

a.Supplies Expense

b.Cost of Goods Sold

c.Sales

d.Inventory

Ā 

14. Generally, the revenue account for a merchandising business is entitled

a.Gross Sales

b.Sales

c.Gross Profit

d.Fees Earned

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