Reference no: EM131206475
On May 1, Shilling Company, Inc. sold merchandise in the amount of $5,800 to Anders, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Shilling uses the perpetual inventory system. The journal entry or entries that Shilling will make on May 1 is: Accounts receivable 5,800 Sales 5,800 Cost of goods sold 4,000 Merchandise inventory 4,000 Accounts receivable 4,000 Sales 4,000 Sales 5,800 Accounts receivable 5,800 Accounts receivable 5,800 Sales 5,800 Sales 5,800 Accounts receivable 5,800 Cost of goods sold 4,000 Merchandise Inventory 4,000 QUESTION 6 Beginning inventory plus net purchases is: Sales. Merchandise (goods) available for sale. Shown on the balance sheet. Ending inventory. Cost of goods sold. QUESTION 7 A merchandising company's operating cycle begins with the purchase of merchandise and ends with the collection of cash from the sale. True False QUESTION 8 A single-step income statement includes cost of goods sold as another expense and shows only one subtotal for total expenses. True False QUESTION 9 Under a perpetual inventory system, when a credit customer returns merchandise to the seller, the seller debits Sales Returns and Allowances and credits Accounts Receivable and also debits Merchandise Inventory and credits Cost of Goods Sold. True False QUESTION 10 A company's net sales are $775,420, its costs of goods sold are $413,890, and its net income is $117,220. Its gross margin ratio equals: 28.3%. 40.5%. 46.6%. 53.4%. 31.5%.
|
What is the cost of budgeted purchases of direct materials
: Norton Manufacturing expects to produce 2,800 units in January and 3,800 units in February. Norton budgets $50 per unit for direct materials. Indirect materials are in significant and not considered for budgeting purposes. Desired ending balance for ..
|
|
How does it function in the cost of capital
: Think about and give a brief answer to: What is cost of equity and how does it function in the cost of capital? To increase a firm’s value, results should show your WACC is moving in which direction? What are those skills?
|
|
Walter recognize as result of the current distribution
: Walter receives cash of $18,000 and land with a fair market value of $75,000 (adjusted basis of $50,000) in a current distribution. His basis in his partnership is $16,000. What amount of gain must Walter recognize as a result of the current distribu..
|
|
Determine the appropriate cost of debt for a company
: How do you determine the appropriate cost of debt for a company? Does it make a difference if the company’s debt is privately placed as opposed to being publicly traded?
|
|
Shilling uses the perpetual inventory system
: On May 1, Shilling Company, Inc. sold merchandise in the amount of $5,800 to Anders, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Shilling uses the perpetual inventory system. The journal entry or entries that Shilling will ..
|
|
What is expected return for a portfolio with an investment
: Weighing the probabilities with returns or risk, help to indicate which asset will be creating the most influence in a mix of assets or a portfolio. Consider the following information: What is the expected return for a portfolio with an investment of..
|
|
Explain the meaning of diversification
: What is the goal of investors putting together a portfolio of investments? Using the music store as you example, what types of music would you put together, if you were an individual's portfolio manager, to satisfy a "risk-taking" preference? Explain..
|
|
Reaction to announcements of massive layoffs
: In recent years, it has been common for companies to experience significant stock price changes in reaction to announcements of massive layoffs. Critics charge that such events encourage companies to fire longtime employees and that Wall Street is ch..
|
|
Determine the margin of safety
: What dollar amount of sales would be necessary to achieve a profit of $150,000? how many units would be necessary to achieve the $150,000 profit? using the $150,000 profit, calculate/determine the margin of safety.
|