Reference no: EM132537380
Questions -
Q1. Bierman's, a local department store, sold a range of products. Yesterday, an order arrived for the appliance center. 300 ovens, purchased at a cost of $200 each, were distributed among 8 stores. 200 were sold for $300 each across all stores. The cost of goods sold totals __________.
a.) $20,000
b.) $90,000
c.) $40,000
d.) $60,000
Q2. Carson Hardware offers a discount to customers who use the store credit card on purchases of building materials. When customers pay their bill in full within 15 days of a purchase, 2% can be deducted from the invoice amount, to be used as store credit on their next purchase.
A frequent customer of the Pleasantville Carson Hardware store, Moira, used her store credit card to buy 20 interior doors for $125 each. Moira paid her balance in full 10 days after the purchase.
Mike will record $50 in the __________.
a.) sales account
b.) purchases discount account
c.) purchases account
d.) sales discount account
Q3. Shauna calculated the net sales for her company using the following figures:
Gross sales = $72,900
Sales discounts = $2,450
Purchase returns and allowances = $3,750
Sales returns and allowances = $2,550
The net sales of Shauna's company are __________.
a.) $69,150
b.) $67,900
c.) $64,150
d.) $71,650
Q4. Sally owns a clothing company and found that she was selling more items, and a greater variety of items, to repeat customers. Sally's CPA advised her to make a set of accounts to separately track what each of her customers bought from her.
To track her customers' purchases, Sally should set up and use a(n) __________.
a.) inventory account
b.) merchandising account
c.) sales subsidiary ledger
d.) purchases subsidiary ledger
Q5. Why are merchandising accounts closed?
a.) To set the permanent accounts to open
b.) To set the temporary accounts to open
c.) To set the temporary accounts to zero
d.) To set the permanent accounts to zero
Q6. Which of the following accounts are closed to Income Summary with a debit entry?
a.) Sales Discounts
b.) Purchase Returns and Allowances
c.) Sales Returns and Allowances
d.) Freight In