Reference no: EM132840283

Questions -

Q1. Company X reported profit of $15,000 and a profit margin of 6%. Its gross profit margin was 25%. Determine the cost of goods sold?

$187,500

$62,500

$60,000

$48,000

Q2. In a perpetual system, if the accounting records show an ending inventory balance of $72,000 and a physical count shows a balance of $66,000, it is necessary to

debit Merchandise Inventory and credit Cost of Goods Sold for $6,000.

debit Cost of Goods Sold and credit Sales Discounts for $6,000.

debit Cost of Goods Sold and credit Merchandise Inventory for $6,000.

debit Sales Discounts and credit Merchandise Inventory for $6,000.

Q3. Which of the following accounts is not closed to Income Summary?

Cost of Goods Sold

Merchandise Inventory

Sales

Sales Discounts

Q4. If a company purchases inventory for $40,000 with terms 2/10 n/30 and does not pay within the discount period, Determine the amount of cash paid?

$39,200

$36,000

$40,000

$40,800

Q5. Under a perpetual inventory system, when merchandise for resale to customers is purchased, a debit is made to:

Supplies.

Merchandise Inventory.

Cost of Goods Sold.

Accounts Payable.