Reference no: EM131719032
Q1. Banner Ltd., bought merchandise for $900, terms 2/10, n/30. If Banner returns $300 worth of the goods to the vendor, the entry to record the return should include a
Debit to Accounts Payable of $300
Debit to Purchases Returns and Allowances of $294
Credit to Purchases Returns and Allowances of $294
None of the others alternatives are correct
Debit to Discounts Lost of $6
Q2. On November 30, Bargain City has the following financial information relating to November:
Sales $10,000
Sales returns & allowances $1,000
Purchases $4,000
Freight-in $500
Purchase Returns & Allowances $400
Purchase discounts $200
What are the Net Purchases for the month of November?
$3,600
$3,900
$3,100
$3,800
Some other amount
Q3. On January 1, 20X7, the ledger of Conglomo Corporation correctly showed supplies inventory of $900. During 20X7, supplies purchases amounted to $6,000. A count (inventory) of supplies on hand at December 31, 20X7, showed $1,800. The 20X7 Balance Sheet statement should report supplies amounting to:
$1,800
$6,000
$5,100
$6,900
None of the others alternatives are correct
Q4. Brady Inc., had credit card sales of $50,000 for the month of July. The credit card company charges a 3% service charge for processes the sale. How much will Brady Inc., receive when payment is received from the credit card company?
$50,000
$48,500
3% of $50,000
There is insufficient information to determine this
$51,500
Q5. On January 1, 20X7, the ledger of Conglomo Corporation correctly showed supplies inventory of $1,000. During 20X7, supplies purchases amounted to $6,000. A count (inventory) of supplies on hand at December 31, 20X7, showed $2,000. The 20X7 Income Statement should report cost of goods sold amounting to:
$5,000
$6,000
None of the others alternatives are correct
$2,000
$7,000
Q6. Lincoln Glass Company sold goods for $5,000 to Olivia Company on March 12 on credit. Terms of the sale were 3/10, n/30. At the time of the sale, Lincoln recorded the transaction by debiting accounts receivable for $5,000 and crediting sales revenue for $5,000 while Olivia debited Purchases for $5,000 and credited Accounts Payable for $5,000. Olivia paid the balance due, less the discount, on March 21. To record the March 21 transaction, Olivia would credit which of the following?
None of the others alternatives are correct
Cash for $4,850
Discount lost $150
Cash for $5,000
Discount gained $150
Q7. The following amounts have been extracted from the accounts of Sell-It at its year-end, December 31, 20x9:
Sales $50,000
Cost of Goods Sold $35,000
Inventory $10,000
Account Payable $8,000
The gross profit which Sell-it would report is
$40,000
None of the others alternatives are correct
$7,000
$15,000
$50,000