Kinsey company had beginning inventory of 50000 ending

Assignment Help Accounting Basics

Reference no: EM13576737

(1) Purchase Discounts Lost should be:
A. Added to the Merchandise Inventory account to determine the cost of inventory on hand
B. Considered a loss account to be reported on the income statement
C. Included on the income statement as a financing expense for the period
D. Part of the cost of goods sold

(2) Orleans Enterprises purchased $37,500 of merchandise on account, terms 2/10, n/30. Assuming Orleans uses the net price method to account for purchase discounts, the journal entry to record the purchase would include a:
A. Debit to Inventory for $37,500
B. Credit to Accounts Payable for $36,750
C. Credit to Cash for $36,750
D. Debit to Purchase Discounts Lost for $750

(3) Hurricane Enterprises purchased $4,000 of merchandise on account, terms 2/10, n/30. Assuming Hurricane uses the gross price method to account for purchase discounts and it pays for the merchandise on the 9th day after the invoice date, which of the following would not be used in either the acquisition of the merchandise or the payment of the invoice :
A. Credit to Cash for $3,920
B. Credit to purchase discount for $80
C. Debit to Accounts Payable for $3,920
D. Debit to Purchase $4,000

(4) Bonita Industries purchased $5,000 of merchandise on account for resale purposes. Bonita plans to sell the merchandise for $7,500. If Bonita returned $1,000 of merchandise for credit, the journal entry to record the return would include a:
A. Debit to Accounts Payable for $1,000
B. Credit to Inventory for $1,500
C. Debit to Sales for $1,500
D. Credit to Cash for $1,000

(5) Kinsey Company had beginning inventory of $50,000, ending inventory of $54,000 and cost of goods sold of $240,000. What was the cost of goods purchased?
A. $294,000
B. $290,000
C. $244,000
D. $236,000

Reference no: EM13576737

Questions Cloud

In the reference population used to develop the test : the chapin social insight test evaluates how accurately the subject appraises other people. in the reference

A bank recorded the number of atm transactions made by its : q1. a multiple-choice test has 6 questions. there are 4 choices for each question. a student who has not studied for

Comment on the speculation that the mean amount of impurity : in a chemical process the amount of a certain type of impurity in the output is difficult to control and is thus a

Robert and mar lou have 3 children they income wages total : robert and mar lou have 3 children they income wages total 25764.39 there fedral income tax withheld was 3580.31

Kinsey company had beginning inventory of 50000 ending : 1 purchase discounts lost should be a. added to the merchandise inventory account to determine the cost of inventory on

Determine the net present value of this investment : george grayson will retire in three years. he wants to open some type of small business operation that can be managed

Find the probability that among 8 randomly selected : a study conducted at a certain college shows that 55 of the schools graduates find a job in their chosen field within a

Using a 12 discount rate compute the net present value of : jessica nekton received 150000 from her mothers estate. she placed the funds into the hands of a broker who purchased

Fun inc has a fully automated production facility in which : fun inc. has a fully automated production facility in which almost 97 percent of averhead costs are driven by machine

User Account

All Pages