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Problem 1: Which of the following goods would not be included in merchandise inventory for a purchasing entity?
a. Goods in transit shipped FOB destination
b. Goods in transit shipped FOB shipping point
c. Goods on hand in the showroom
d. Goods ordered and received from the supplier
Problem 2: A sale on March 21 with terms of n/10 eom is due to be collected by
a. March 31.
b. April1.
C. April 10.
d. April 30.
Problem 3: An amount deducted from the catalog price for an item of merchandise is called
a. customer discount.
b. purchases discount.
c. sales discount.
d. trade discount.
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