Which account does a merchandiser use that a service company does not use

| June 14, 2018

1-Which account does a merchandiser use that a service company does not use?a-Depreciation Expenseb-Supplies Inventoryc-Costs of Goods Soldd-Unearned Revenue2-A perpetual inventory systema-does not maintain control over inventory as strongly as a periodic inventory system does.b-keeps inventory continuously updated.c-updates inventory at the end of the month, based on a physical count.d-is used by both merchandising companies and service companies.3-In a periodic inventory system, what is the journal entry for the purchase of merchandise on account?DateAccounts and ExplanationsDebitCreditA.PurchasesXXXAccounts PayableXXXB.Merchandise InventoryXXXAccounts PayableXXXC.Merchandise InventoryXXXAccounts ReceivableXXXD.Accounts ReceivableXXX Merchandise InventoryXXX4-TX Manufacturing purchased inventory for $2,500 and paid a $200 freight bill. TX Manufacturing returned $350 of the goods to the seller and then took a 2% purchase discount. What is TX Manufacturing’s final cost of the inventory that it kept?a-$2,307b-$2,303c-$2,300d-$2,1075-Marathon Sports Gear had sales of $562,000, sales returns of $27,000, and purchase discounts of $11,000. Cost of Goods Sold was determined to be $280,000. How much gross profit did Marathon Sports Gear report?a-$282,000b-$266,000c-$255,000d-$244,0006-Suppose the Jim’s Jeans Merchandise Inventory account shows an unadjusted balance of $10,000. On December 31, 2016, the physical count of goods on hand totaled $9,200. To adjust the accounts, Jim’s Jeans would make which of the following entries?DateAccounts and ExplanationsDebitCreditA.Merchandise Inventory800Costs of Goods Sold800B.Costs of Goods Sold800Merchandise Inventory800C.Merchandise Inventory800Purchases800D.Purchases800Merchandise Inventory8007-Suppose Discount Dollar’s Purchases totaled $68,000, Purchase Returns totaled $5,200, Purchase Allowances totaled $1,500, Purchase Discounts totaled $2,800, and Freight In totaled $5,000. What is Discount Dollar’s net purchases?a-$ 63,500b-$ 58,500c-$ 55,000d-$ 53,5008-FOB shipping point refers to the situation in which title to goods in transit rests with thea-seller.b-buyer.c-shipping company.d-transportation company.9-The Sales Discounts account is a contra account to which of the following accounts?a-Cost of Goods Soldb-Sales Returns and Allowancesc-Purchases Discountsd-Sales Revenue10-Assume Easy Electronics had net Sales of $100,000, and Cost of Goods Sold of $75,000. Average Inventory was $15,000. What is the gross profit percentage for Easy Electronics for this period?a-90%b-75%c-40%d-25%

Order your essay today and save 30% with the discount code: ESSAYHELP
Order your essay today and save 30% with the discount code: ESSAYHELPOrder Now