Which account does a retailer use that a service firm does not use?

a. Inventory
b. Sales revenue
c. Cost of sales
d. Cost of sales, Inventory and Sales revenue
Suppose Dave’s Discount's Inventory account showed a balance of $8000 before the year-
end adjustments. The physical count of goods on hand totalled $7400. Which account
would Dave Marshall close at the end of the year?

a. Cost of sales
b. Accounts receivable
c. Accounts payable
d. Inventory
Which of the following is deducted from goods available for sale to determine cost of
goods sold?

a. Beginning inventory
b. Purchases
c. Freight in
d. Ending inventory
The final closing entry for a proprietorship is:

a. Dr. Sales revenue / Cr. Income summary

b.
Dr. Income summary / Cr. Expenses

c. Dr. Capital / Cr. Drawings

d. Dr. Drawings/ Cr. Capital
Merchandise costing $750 was sold on credit to Jaffes Company for $900. Five days
later, the business granted an allowance of $250 for sold merchandise. Under the
perpetual inventory system, the entry to record the allowance on sold merchandise
inventories is:

a. Debit Inventory and Credit Cost of Sales for $300

b. Both of these
c. Neither of these
d. Debit Sales Returns and Allowances and Credit Accounts Receivable for $250
A company purchased goods for $600 and was given credit terms of 1/10, n60. Its
entry upon payment fifteen days later would include a credit to

a. Accounts Payable for $600

b. Cash for $600
c. Cash for $594
d. Purchase Discount for $6
Which items both appear on a functional format income statement but do not appear on a
descriptive format income statement?

a. Cost of sales and Net sales

b. Administrative expenses and Net sales
c. Gross profit and Net profit
d. Administrative expenses and Cost of sales
The difference between gross sales and net sales is equal to

a. sales returns and allowances

b. the sum of sales discounts and sales returns and allowances
c. sales discounts
d. the difference between sales discounts and sales returns and allowances
Under the perpetual inventory system, the entry to record the allowance of
merchandise inventory purchased on credit is:

a. Debit Accounts Payable and Credit Purchases

b. Debit Purchases and Credit Accounts Payable
c. Debit Accounts Payable and Credit Purchases Returns and Allowances
d. Debit Accounts Payable and Credit Inventory
The two main inventory accounting systems are the:

a. perpetual and periodic

b. cash and accrual
c. purchase and sale
d. returns and allowances
Merchandise costing $750 was sold on credit to Jaffes Company for $1,000. Five
days later, $150 of merchandise was returned. The cost of the returned merchandise
was $115. Assuming the perpetual inventory system is used, the entry to record the
return of the merchandise is:

a. neither of these.
b. debit Inventory, $115; credit Cost of goods sold, $115.
c. both of these.
d. debit Sales Returns and Allowances, $150; credit Accounts Receivable, $150.
C Manufacturing purchased inventory for $5 300 and also paid a $260 freight bill. JC
Manufacturing returned 45% of the goods to the seller and later took a 2% purchase
discount. Ignoring GST, what is JC Manufacturing's final cost of the inventory that it kept?
{Round your answer to the nearest whole number.

a. $3117
b. $2997
 c. $2857
d. $2337
Suppose Dave’s Discount's Inventory account showed a balance of $8000 before the year-
end adjustments. The physical count of goods on hand totalled $7400. Assuming errors of
recording were involved, Dave Marshall would make the following entry to adjust the
accounts:

a.
Dr. Inventory 600
Cr. Cost of sales 600

b.
Dr. Accounts payable 600
Cr. Inventory 600

c.
Dr. Cost of sales 600
Cr. Inventory 600

d.
Dr. Inventory 600
Cr. Accounts receivable 600

Clear my choice
Assume Juniper Natural Dyes made Net sales of $90000 and Cost of sales totalled $58000.
Average inventory was $ 17 000. What was Juniper Natural Dyes' gross profit percentage
for this period? {Round your answer to the nearest whole per cent.

a. 36%
b. 17%
c. 3.4 times
d. 64%
Suppose in one day JB Hi-Fi had sales of $300 000 and sales returns of $45 000. Cost of
sales was $152 000. How much gross profit did JB Hi-Fi report for the day?

a. $148000
b. $255000
c. $103000
d. $88000
Under the perpetual inventory system, which account is used to record purchases of
merchandises?

a. Inventory
b. Cost of goods sold
c. Purchases
d. Accounts Payable
Lexel Company sold goods for $1,000, term 2/10, n30. How much would Lexel receive
if the account were paid after the discount period?

a. $882
b. $1,000
c. $900
d. $980
A company purchased goods for $600 and was given credit terms of 1/10, n60. Its
entry upon payment nine days later would include a credit to

a. Cash for $600

b. Cash for $590
c. Inventory for $6
d. Accounts Payable for $600
Spring Cali Company sold goods for $1,000, term 2/10, n30. How much would Spring
Cali receive if the account were paid within the discount period?

a. $882
b. $980
c. $1,000
d. $900