Question

37. A credit memorandum for $156 (sale price of merchandise $150; sales tax of $6) was issued to a customer for goods returned that had been purchased on account. To enter this transaction properly,

a. Sales would be debited for $6.

b. Sales would be debited for $150.

c. Sales would be debited for $156.

d. Sales would not be debited.

21. The sales account is a revenue account.

a. True

b. False

4. The supplier or vendor is the person or firm from whom the merchandise or other property is ordered.

a. True

b. False

Merchandise inventory available at the beginning of the period plus cost of goods purchased minus merchandise inventory at the end of the period equals

a. purchases.

b. cost of goods sold.

c. purchases returns and allowances.

The account to which transportation charges on incoming merchandise are generally entered is

a. Freight-In.

b. FOB-In.

c. Freight-Out.

d. Delivery-In.

51. The entry to record the purchase on account of merchandise for resale under the periodic inventory system includes

a. debiting Purchases and crediting Cash.

b. debiting Purchases and crediting Accounts Payable.

c. debiting Merchandise Inventory and crediting Cash.

d. debiting Merchandise Inventory and crediting Accounts Payable

d. net purchases

Answer 1

37. A credit memorandum for $156 (sale price of merchandise $150; sales tax of $6) was issued to a customer for goods returned that had been purchased on account. To enter this transaction properly,

Sales would be debited for $150.

Correct option is (b)

21. The sales account is a revenue account.

The given statement is true.

4. The supplier or vendor is the person or firm from whom the merchandise or other property is ordered.

The given statement is true.

Merchandise inventory available at the beginning of the period plus cost of goods purchased minus merchandise inventory at the end of the period equals cost of goods sold.

Correct option is (b)

The account to which transportation charges on incoming merchandise are generally entered is

a. Freight-In.

Correct option is (a)

51. The entry to record the purchase on account of merchandise for resale under the periodic inventory system includes

b. debiting Purchases and crediting Accounts Payable.

Correct option is (b)

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