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84.
Which of the following factors would suggest the use of a periodic inventory system?
85.
In comparing a perpetual inventory system with a periodic inventory system, which of the
following statements is
not
correct?
86.
Periodic inventory systems are used primarily by:
87.
Which account listed below is classified as a contra-revenue account?
88.
The credit term 2/10, n/30 means:
89.
Sales discounts and allowances:
90.
Which of the following credit terms is the most advantageous to the purchaser of
merchandise?
91.
The cost of delivering merchandise to the customer is:
92.
The cost of the transportation of inventory purchased:
93.
To arrive at net sales:
94.
The Sales Returns and Allowances account is debited when:
95.
All of the following accounts normally have debit balances
except
:
96.
If sales discounts are shown as a separate item in financial statements, they should be
shown as a(n):
97.
Regal Artworks Co. records purchases net of all available purchase discounts. If the
company makes payment after the discount has expired, the entry to record the payment
should include a:
98.
Bernice Beverages is not satisfied with the quality of merchandise purchased from Reade
Supplies. If Reade Supplies agrees to settle this matter by granting Bernice Beverages a
sales allowance, Bernice Beverages will:
99.
The basic purpose of offering customers cash discounts such as 2/10, n/30 is to:
100.
When making sales, the sales taxes received are:
101.
Emerald Co. uses a perpetual inventory system and records purchases of merchandise at
net cost. The company recently purchased 200 compact discs at an invoice price of $6,000
and terms of 2/10, n/30. Half of these discs had been mislabeled and were returned
immediately to the supplier. The journal entry to record payment of this invoice after the
discount period has expired will include a:
102.
Bartner Furniture, Inc. purchased inventory at $1,200 list price and the terms were 3/10,
n/30. Bartner paid the full invoice price on the 10th day, what amount of cash did Bartner
pay to settle the account?
103.
Beacon Food Stores purchased canned goods at an invoice price of $4,000 and terms of
2/10, n/30. Half of the goods had been mislabeled and were returned immediately to the
supplier. If Beacon Food pays the remaining amount of the invoice within the discount
period, the amount paid should be:
104.
If Bounder Dog Supplies, Inc. purchased inventory at $2,200 list price and the terms were
3/10, n/30, what would be the value associated with the inventory if payment was made
within 10 days?
105.
Pet Foods Plus purchased bagged dog food at an invoice price of $6,000 and terms of
2/10, n/30. Half of the bags had been damaged in shipment and delivery was refused. If
Pet Foods Plus pays the remaining amount of the invoice within the discount period, the
amount paid should be:
106.
The gross profit margin:
107.
At the beginning of 2015, Midway Hardware has an inventory of $400,000. Because sales
growth was strong during 2015, the owner wants to increase inventory on hand to
$450,000 at December 31, 2015. If net sales for 2015 are expected to be $1,600,000, and
the gross profit rate is expected to be 35%, compute the cost of the merchandise the
owner should expect to purchase during 2015.
108.
If cost of goods sold is $480,000 and the gross profit rate is 40%, what is the gross profit?
109.
At the beginning of the year, Saratoga Dress Co. had an inventory of $300,000. During the
year, the company purchased merchandise costing $850,000. Net sales for the year totaled
$1,200,000, and the gross profit rate was 45%. The cost of goods sold and the ending
inventory, respectively, were:
110.
At the beginning of 2015, England Dresses has an inventory of $140,000. However,
management wants to reduce the amount of inventory on hand to $80,000 at December
31. If net sales for 2015 are forecast at $400,000 and the gross profit rate is expected to
be 40%, compute the cost of the merchandise which management should expect to
purchase during 2015. (Hint: First compute the expected cost of goods sold.)
111.
On July 1, the inventory of at Barnett Shoes was $60,000. Because of anticipated back-to-
school sales, the owner wants to have an inventory of $105,000 on hand at the beginning
of August. Net sales during July are expected to total $70,000, with a gross profit rate of
45%. During July, the company should purchase merchandise costing:
112.
If costs of goods sold is $560,000 and its gross profit rate is 20%, what is the gross profit?
113.
At the beginning of 2015, Wilson Stores has an inventory of $300,000. Because sales
growth was strong during 2015, the owner wants to increase inventory on hand to
$450,000 at December 31, 2015. If net sales for 2015 are expected to be $2,600,000, and
the gross profit rate is expected to be 35%, compute the cost of the merchandise the
owner should expect to purchase during 2015.
