Looking for assistance with this Accounting Quiz. Multiple choice questions. For all essay questions, show your work.
Wilshire Equipment Company sold merchandise on credit. No discounts were offered. The proper journal entry to record this sale would be:
A. Debit Sales, and Credit Accounts Receivable.
Using the gross method of recording sales, what sales price should be recorded when an item with an $1,100 list price is sold with a 15% trade discount? The sales invoice includes the terms 2/10, n/30?
Merchandise is sold on account on January 16, terms 2/10, n/30, and recorded by debiting Accounts Receivable and crediting Sales for $2,000. If payment occurs on January 21, the journal entry would include a credit to:
A. Accounts Receivable for $1,960.
Sperry Company had beginning inventory of $80,000, purchased merchandise during the period for $140,000, and had ending inventory of $95,000. How much was goods available for sale?
A typical internal accounting control feature would be:
A. managerial authorization of refunds.
Mathew Company provided the following data concerning its income statement: sales, $1,000,000; purchases, $400,000; beginning inventory, $250,000; ending inventory, $275,000; operating expenses, $95,000; freight-in, $5,000; sales discounts, $20,000; purchases discounts, $15,000; sales returns & allowances, $120,000; and purchases returns & allowances, $45,000. The data are complete and provide the basis for preparation of an income statement. How much is cost of goods sold?
Given below are account balances for Clayton Company:
Gross sales, $100,000
How much is the gross profit margin?
Given below are account balances for Aoki Company:
Net sales, $100,000
How much is the net profit margin?
The inventory classification on a retailer’s balance sheet may include:
A. raw materials.
Inventory accounts are classified in which section of the balance sheet?
A. Current assets.
Ashton agrees to purchase certain inventory items from Duart. Duart is to ship the goods F.O.B. destination. At Ashton’s fiscal year end, Duart called to say that the goods had been shipped and Ashton could expect to receive them within a week.
A. Ashton should include the goods in inventory.
The recorded cost of inventory would include the purchase price plus:
A. transportation charges incurred by the seller.