In order to calculate shrinkage: both periodic and perpetual inventory systems a

Question

In order to calculate shrinkage:

both periodic and perpetual inventory systems are needed. a periodic inventory system is more effective. a perpetual inventory system requires an occasional count of actual inventory.



it does not matter which system one uses.

Merchandise was sold on credit for $3,000, terms 1/10, n/30. How should the seller record the cash collection? Debit Cash, $3,000, and credit Accounts Receivable, $3,000, if collected within the discount period. Debit Cash, $3,000, credit Accounts Receivable, $2,970, and credit Sales Discounts, $30, if collected within the discount period. Debit Cash, $3,000, credit Accounts Receivable, $2,970, and credit Sales Discounts, $30, if collected after the discount period. Debit Cash, $3,000, and credit Accounts Receivable, $3,000, if collected after the discount period.
Your store buys ice cream at a cost of $1.50 a half gallon and sells it for $4 a half gallon. General and administrative expenses are $0.75 per half gallon. Which of the following statements is true? Your gross profit per half gallon is $2.50. Your gross profit per half gallon is $1.75. The difference between the selling price and the cost is recorded in the gross profit account. The difference between the selling price and the cost is recorded in the net profit account.



A company had the following partial list of account balances at year-end:



The amount of net sales reported on the income statement would be: $57,200. $64,200. $56,000. $55,700.





Flynn Company's monthly bank statement showed the ending balance of cash of $18,500. The bank reconciliation for the period showed an adjustment for a deposit in transit of $1,500, outstanding checks of $2,000, a NSF check of $700, bank service charges of $30 and the EFT from a customer in payment of the customer's account of $1,500.
Use the information above to answer the following question. What is the adjusted cash balance at the end of the month? $18,000 $17,230 $19,000 $19,270

DigDug Corporation had outstanding checks totaling $5,400 on its June bank reconciliation. In July, DigDug issued checks totaling $38,900. The July bank statement shows that $26,300 in checks cleared the bank in July. The amount of outstanding checks on DigDug's July bank reconciliation should be: $12,600. $18,000. $5,400. $7,200.

Explanation / Answer

1. a perpetual inventory system requires an occasional count of actual inventory.

2.Debit Cash, $3,000, credit Accounts Receivable, $2,970, and credit Sales Discounts, $30, if collected after the discount period.

3.The difference between the selling price and the cost is recorded in the net profit account

4. $57,200.

5. $17,230

6.$12,600.

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