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Under the perpetual inventory system, the journal entries to record sales returns (the original sale was on account) would be:

Select one:

a.

b.

c.

d.

Question 6

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Gross profit represents the mark-up on ________.

Select one:

a. transportation cost

b. sales revenue

c. operating expenses

d. merchandise inventory

Question 7

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Refer to the following trial balance.

How much is the net sales revenue?

Select one:

a. $479,000

b. $463,000

c. $141,000

d. $145,000

Question 8

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Which of the following is subtracted from net sales revenue to arrive at gross profit on a multi-step income statement?

Select one:

a. operating expenses

b. cost of goods sold

c. sales discounts and sales returns and allowances

d. cost of goods available for sale

Question 9

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Calculate the cost of goods sold for a merchandiser using the periodic inventory system from the following details.

Select one:

a. $481,000

b. $510,000

c. $801,000

d. $499,000

Question 10

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A merchandiser purchased inventory on account for $10,000. Under the periodic inventory system, the journal entry to record the purchase would include ________.

Select one:

a. a debit to Purchases for $10,000 and a credit to Accounts Payable for $10,000

b. a debit to Accounts Payable for $10,000 and a credit to Purchases for $10,000

c. a debit to Merchandise Inventory for $10,000 and a credit to Accounts Payable for $10,000

d. a debit to Accounts Payable for $10,000 and a credit to Merchandise Inventory for $10,000

Question 11

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Which of the following states that the business should use the same accounting methods from period to period?

Select one:

a. consistency principle

b. materiality concept

c. conservatism

d. disclosure principle

Question 12

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Which of the following inventory costing methods requires the calculation of a new average cost after each purchase?

Select one:

a. weighted-average

b. specific identification

c. last-in, first-out

d. first-in, first-out

Question 13

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A company that uses the perpetual inventory system sold goods to a customer on account for $2,100. The cost of the goods sold was $1,050. Which of the following journal entries correctly records this transaction?

Select one:

a.

b.

c.

d.

Question 14

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A company purchased 110 units for $30 each on January 31. It purchased 200 units for $25 each on February 28. It sold 200 units for $50 each from March 1 through December 31. If the company uses the first-in, first-out inventory costing method, what is the amount of Cost of Goods Sold on the income statement for the year ending December 31? (Assume that the company uses a perpetual inventory system.)

Select one:

a. $8300

b. $5000

c. $5550

d. $3300

Question 15

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Which of the following remains the same regardless of the inventory costing method used by a company? Assume the cost of inventory is rising.

Select one:

a. cost of goods sold

b. purchases

c. net income

d. ending merchandise inventory

Question 16

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Which of the following inventory valuation methods minimizes income tax expense during a period of rising inventory costs?

Select one:

a. weighted-average

b. last-in, first-out

c. specific identification

d. first-in, first-out

Question 17

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Ending inventory for the current accounting period is overstated by $2,700. What effect will this error have on Cost of Goods Sold and Net Income for the current accounting period?

Select one:

a.

b.

c.

d.

Question 18

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Which of the following is the correct formula to calculate inventory turnover?

Select one:

a. Inventory turnover = Cost of goods sold × Average merchandise inventory

b. Inventory turnover = Cost of goods sold + Average merchandise inventory

c. Inventory turnover = Cost of goods sold / Average merchandise inventory

d. Inventory turnover = Cost of goods sold - Average merchandise inventory

Question 19

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Which of the following amounts could differ if a company, using the LIFO inventory costing method, shifts from a periodic inventory system to a perpetual inventory system?

Select one:

a. ending merchandise inventory

b. purchases

c. sales revenue

d. purchase returns

Question 20

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A company uses the weighted-average method of inventory valuation under a periodic inventory system. The company began the year with a zero inventory balance. They had the following transactions during the year.

1. Purchased 64 units at $5 per unit
2. Purchased 110 units at $5 per unit
3. Sold 90 units at $10 per unit
4. Purchased 55 units at $6 per unit
5. Sold 90 units at $13.50 per unit

At the end of the year, the company counted the inventory and found 49 units remaining. Calculate the cost of goods sold for the year. (Round the unit costs to two decimal places and total costs to the nearest dollar.)

Select one:

a. $5

b. $257

c. $943

d. $1,200

Accounts Receivable XX Sales XX Sales XX Cost of Goods Sold XX

Explanation / Answer

As per Chegg Guidelines we answer one question per post. I have answered more than 1 question. Kindly post remaining questions in separate post to get the best answers Q5 c. Sales Returns and Allowances XX    Accounts Receivable XX Merchandise Inventory XX    Cost of Goods Sold XX Q6 b. sales revenue Q7 b. $463,000 Sales Revenue            480,000.00 Sales Returns and allowance              (9,000.00) Sales discounts              (8,000.00) Net Sales Revenue            463,000.00 Q8   b. cost of goods sold

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