Reference no: EM132539482

Question 1. A company purchased $4,500 of merchandise on May 1 with terms 2/10 n/30. On May 6, it returned $250 of that merchandise. On May 8, it paid the balance owed for merchandise, taking any discount it is entitled to. The cash paid on May 8 is

a. $4,160

b. $4,165

c. $4,250

d. $4,410

e. $4,500

Question 2. A company has cash sales of $75,000, credit sales of $320,000, sales allowances of $13,700 and sales discounts of $6,000. Its net sales equal

a. $300,300

b. $339,700

c. $375,300

d. $395,000

e. $414,700

Question 3. A company has $550,000 in net sales and $193,000 in gross profit. This means its cost of goods sold equals

a. $(193,000)

b. $193,000

c. $357,000

d. $550,000

e. $743,000

Question 4. Accounts receivable are best described as

a. Liabilities of the company that represent the amount owed to suppliers

b. Amounts that have previously been received from customers

c. Assets of the company representing the amounts owed to customers

d. Amounts that have previously been paid to suppliers

e. None of the above

Question 5. On March 17, Fox Lumber sells materials to Whitney Construction for $12,000, terms 2/10, n/30. Whitney pays for the materials on March 23. What is the amount of net revenues as of March 23?

a. $0

b. $11,760

c. $12,000

d. $12,240