Reference no: EM132650510

Question 1: If merchandise sells for $3,500 on account, with terms of 3/15, n/45, and the cost of the inventory sold is $2,100, the journal entry for the receipt of the customer's payment on account within the discount period under the gross method would include

Select one:

a. a credit to Cash for $3,395
b. a credit to Accounts Receivable for $3,395
c. a debit to Sales of $105
d. a credit to Sales Discounts for $105

Question 1: If merchandise sells for $3,500, with terms of 3/15, n/45, and the cost of the inventory sold is $2,100, the amount charged to sales is

Select one:

a. $3,395
b. $3,500
c. $2,037
d. $2,100

Question 1: Pierce Company sold merchandise to Stanton Company on account FOB shipping point, 2/10, net 30, for $20,000. Pierce prepaid the $500 shipping charge. Which of the following entries does Pierce make for this sale?

Select one:

a. Accounts Receivable-Stanton, debit $20,000; Sales, credit $20,000
b. Accounts Receivable-Stanton, debit $19,600; Sales, credit $19,600, and Accounts Receivable-Stanton, debit $500; Cash, credit $500
c. Accounts Receivable-Stanton, debit $20,100; Sales, credit $20,100
d. Accounts Receivable-Stanton, debit $20,000; Sales, credit $20,000, and Delivery Expense, debit $500; Cash, credit $500