Weekly Post-class Online quiz #5 (Merchandising): Principles of Accounting-T123WSB-9 21:40, 16/02/2023

Weekly Post-class Online quiz #5 (Merchandising)

Due Feb 16 at 10:15pm Points 15 Questions 15
Available Feb 16 at 9:30pm - Feb 16 at 10:15pm 45 minutes
Time Limit 45 Minutes

Attempt History
Attempt Time Score
LATEST Attempt 1 10 minutes 15 out of 15

! Correct answers will be available on Feb 16 at 10:15pm.

Score for this quiz: 15 out of 15

Submitted Feb 16 at 9:40pm
This attempt took 10 minutes.

Question 1 1 / 1 pts

Kaden Co. sells merchandise on credit to Jase Co. for $9,600. The
invoice is dated July 15 with terms of 1/15, net 45. If Jase Co.
chooses not to take the discount, by when should the payment be
made?

August 29

July 30

July 25

August 15

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Weekly Post-class Online quiz #5 (Merchandising): Principles of Accounting-T123WSB-9 21:40, 16/02/2023

Question 2 1 / 1 pts

Which of the following statements is NOT correct?

Restaurants and small retail stores often use the periodic inventory
system.

Even in a perpetual inventory system, a business must count

inventory at least one a year.

In a perpetual inventory system, the "cash register" at the store is a

computer terminal that records sales and updates inventory records.

In a periodic inventory system, merchandise inventory and

purchasing systems are integrated with the records for Accounts
Receivable and Sales Revenue.

Question 3 1 / 1 pts

Norfolk Sporting Goods purchases merchandise with a catalog list

price of $30,000. The retailer receives a 30% trade discount and
credit terms of 2/10, n/30. What amount should Norfolk debit to the
merchandise inventory account?

$30,000

$21,000

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$29,400

$20,580

Question 4 1 / 1 pts

Using a perpetual inventory system, the entry to record the return

from a customer of merchandise sold on account includes a

credit to Sales Returns and Allowances

credit to Merchandise Inventory

debit to Merchandise Inventory

debit to Cash

Question 5 1 / 1 pts

A merchandiser uses a perpetual inventory system. The beginning

Retained Earnings balance of the merchandiser was $110,000.
During the year, Sales Revenue amounted to $90,000, Cost of
Goods Sold was $40,000, and all other expenses totaled $12,000.
The company declared and paid $27,000 as dividends. The ending
balance of Retained Earnings would be ________.

$110,000

$121,000

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Weekly Post-class Online quiz #5 (Merchandising): Principles of Accounting-T123WSB-9 21:40, 16/02/2023

$148,000

$175,000

Question 6 1 / 1 pts

Which of the following items would not affect the cost of merchandise
inventory acquired during the period?

quantity discounts

freight in

sales discounts

sales commissions

Question 7 1 / 1 pts

The entry to record the return of merchandise from a customer would

include a

debit to Sales

debit to Estimated Returns Inventory

debit to Sales Returns and Allowances

credit to Sales

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Question 8 1 / 1 pts

The journal entry to record the receipt of inventory purchased for

cash in a perpetual inventory system would be

Jan. 1 Office Supplies 1,500

Cash 1,500

Jan. 1 Cash 1,500

Accounts Receivable 1,500

Jan. 1 Merchandise Inventory 1,500

Cash 1,500

Jan. 1 Purchases 1,500

Accounts Payable 1,500

Question 9 1 / 1 pts

The arrangements between buyer and seller as to when payments

for merchandise are to be made are called

cash on demand

net cash

credit terms

gross cash

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Question 10 1 / 1 pts

When a buyer returns merchandise purchased for cash, the buyer

will record the transaction as a

debit to Cash and a credit to Merchandise Inventory

debit to Merchandise Inventory and a credit to Cash

debit to Cash and a credit to Sales

debit to Sales and a credit to Accounts Payable

Question 11 1 / 1 pts

Who is responsible for the freight costs when the terms are FOB
shipping point?

the buyer

the seller

either the seller or the buyer

the ultimate customer

Question 12 1 / 1 pts

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Weekly Post-class Online quiz #5 (Merchandising): Principles of Accounting-T123WSB-9 21:40, 16/02/2023

Merchandise with a sales price of $5,000 is sold on account with

terms 2/10, n/30. The journal entry to record the sale would include
a

debit to Accounts Receivable for $4,880

credit to Sales for $5,000

debit to Cash for $5,000

debit to Sales Discounts for $100

Question 13 1 / 1 pts

If the buyer is to pay the freight costs of delivering merchandise,

delivery terms are stated as

FOB buyer

FOB shipping point

FOB n/30

FOB destination

Question 14 1 / 1 pts

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Weekly Post-class Online quiz #5 (Merchandising): Principles of Accounting-T123WSB-9 21:40, 16/02/2023

Calculate income from operations for Jonas Company based on the

following data:

Sales $764,000
Operating expenses 52,500
Cost of merchandise 538,000
sold

$173,500

$485,500

$226,000

$711,500

Question 15 1 / 1 pts

Taking advantage of a 2/10, n/30 purchases discount is equal to a

yearly savings rate of approximately

20%

24%

36%

2%

Quiz Score: 15 out of 15

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