ACC 100 Lecture Notes - Lecture 8: Aror
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Related Questions
1.) X sold Y merchandise on account FOB shipping point, 3/10,net 30, for $10,000. X prepaid the $200 shipping charge. Using theperpetual inventory method, which of the following entries will Ymake if Y pays within the discount period?
Accounts Payable-X, debit $9,900; Cash, credit $9,900 | |
Accounts Payable-X, debit $10,000; Transportation In, credit$200; Cash, credit $9,800 |
Accounts Payable-X, debit $9,700; Merchandise Inventory, debit$200; Cash, credit $9,900 | |
Accounts Payable-X, debit $9,700; Transportation In, debit $200;Cash, credit $9,900 |
2.) Merchandise with an invoice price of $4,000 is purchasedsubject to terms of 2/10, n/30, FOB destination. Transportationcosts paid by the seller totaled $150. What is the cost of themerchandise, assuming the discount is taken?
$4,070 | |
$3,920 |
$4,067 | |
$4,150 |
3.) A sales invoice included the following information:merchandise price, $1,000; transportation, $200; terms 1/10, n/eom,FOB shipping point. Assuming that a credit for merchandise returnedof $300 is granted prior to payment, that the transportation isprepaid by the seller, and that the invoice is paid within thediscount period, what is the amount of cash received by theseller?
$693 | |
$893 |
$990 | |
$700 |
4.) X sold Y merchandise on account FOB shipping point, 2/10,net 30, for $10,000. X prepaid the $200 shipping charge. Which ofthe following entries does X make to record this sale?
Accounts Receivable debit $9,800; Sales credit $9,800; AccountsReceivable debit $200; Cash credit $200 | |
Accounts Receivable debit $10,400; Sales credit $10,400 |
Accounts Receivable debit $10,000; Sales credit $10,000 | |
Accounts Receivable debit $10,000; Sales credit $10,000;Transportation Out debit $200; Cash credit $200 |
Journalize the following transactions for Moakley Bicycles using the periodic inventory system. Explanations are not required. Γ’ΒΒ(Record debitsΓ’ΒΒ first, then credits. Exclude explanations from journalΓ’ΒΒ entries.)
TRANSACTIONS:
Nov. | 2 | Purchased $2,900 of merchandise inventory on account under terms 33Γ’ΒΒ/10, Γ’ΒΒn/EOM and FOB shipping point. |
6 | Returned $700 of defective merchandise purchased on November 2. | |
8 | Paid freight bill of $140 on November 2 purchase. | |
10 | Sold merchandise inventory on account for $6,700. Payment terms were 33Γ’ΒΒ/15, n/45. | |
11 | Paid amount owed on credit purchase of November Γ’ΒΒ2, less the return and the discount. | |
22 | Received cash from November 10 customer in full settlement of theirΓ’ΒΒ debt, less the discount. |
Date | Accounts | Debit | Credit | ||
Nov. 2 | |||||