Reference no: EM132251435

Questions -

Q1. Annual depreciation on equipment amounted to $27,950 for the current year. What account would we credit when we record this adjusting entry in the general journal?

depreciation expense

equipment

cash

accumulated depreciation, equipment

Q2. What is gross profit for a merchandiser calculated as?

net sales minus cost of goods sold

gross sales minus cost of goods sold

net sales minus merchandise inventory

gross sales minus merchandise inventory

Q3. On August 1, our company purchases $1,000 worth of merchandise inventory on credit with the terms 3/10, n/30. What is the amount we would credit to cash if we pay this invoice on August 9?

$1,000

$997

$990

$970

Q4. Our company purchases $4,000 worth of merchandise inventory on credit with the terms 2/10, n/30. Transportation costs were an additional $200. Our company returned $300 worth of merchandise. What is the total cost of this merchandise if our company paid the invoice within the discount period?

$3,426

$3,826

$4,018

$4,410