Deck 5: Accounting for Merchandising Operations

Question 1

The following statements regarding merchandise inventory are true except:

A)Merchandise inventory is reported on the balance sheet as a current asset.
B)Merchandise inventory refers to products a company owns and intends to sell.
C)Merchandise inventory may include the costs of freight in and making them ready for sale.
D)Merchandise inventory appears on the balance sheet of a service company.
E)Purchasing merchandise inventory is part of the operating cycle for a business.

Answer 1

D

Question 2

A company's current assets are $17,980,its quick assets are $11,420 and its current liabilities are $12,190.Its quick ratio equals:

A)0.94.
B)1.07.
C)1.48.
D)1.57.
E)2.40.

Answer 2

A

Question 3

Cost of goods sold:

A)Is another term for merchandise sales.
B)Is the term used for the expense of buying and preparing merchandise for sale.
C)Is another term for revenue.
D)Is also called gross margin.
E)Is a term only used by service firms.

Answer 3

B

Question 4

A company has sales of $375,000 and its gross profit is $157,500.Its cost of goods sold equals:

A)$(217,000).
B)$375,000.
C)$157,500.
D)$217,500.
E)$532,500.

Question 5

Merchandise inventory:

A)Is a long-term asset.
B)Is a current asset.
C)Includes supplies the company will use in future periods.
D)Is classified with investments on the balance sheet.
E)Must be sold within one month.

Question 6

Using the following year-end information for Calvin's Clothing,calculate the current ratio and acid-test ratio for the business:

A)1.80 and 1
B)1.97 and 1.52
C)2.73 and 1.52
D)3.50 and 0.90
E)1.80 and 0.90

Question 7

The operating cycle for a merchandiser that sells only for cash moves from:

A)Purchases of merchandise to inventory to cash sales.
B)Purchases of merchandise to inventory to accounts receivable to cash sales.
C)Inventory to purchases of merchandise to cash sales.
D)Accounts receivable to purchases of merchandise to inventory to cash sales.
E)Accounts receivable to inventory to cash sales.

Question 8

The gross margin ratio:

A)Is also called the net profit ratio.
B)Indicates the percent of sales revenue remaining after covering the cost of the goods sold.
C)Is also called the profit margin.
D)Is a measure of liquidity and should exceed 2.0 to be acceptable.
E)Should be greater than 1 for merchandising companies.

Question 9

KLM Corporation's quick assets are $5,888,000,its current assets are $11,700,000 and its current liabilities are $8,000,000.Its acid-test ratio equals:

A)0.50.
B)0.68.
C)0.74.
D)1.50.
E)2.20.

Question 10

A merchandiser:

A)Earns net income by buying and selling merchandise.
B)Receives fees only in exchange for services.
C)Earns profit from commissions only.
D)Earns profit from fares only.
E)Buys products from consumers.

Question 11

The acid-test ratio differs from the current ratio in that:

A)Liabilities are divided by current assets.
B)Prepaid expenses and inventory are excluded from the calculation of the acid-test ratio.
C)The acid-test ratio measures profitability and the current ratio does not.
D)The acid-test ratio excludes short-term investments from the calculation.
E)The acid-test ratio is a measure of liquidity but the current ratio is not.

Question 12

The acid-test ratio:

A)Is also called the quick ratio.
B)Measures profitability.
C)Measures inventory turnover.
D)Is generally greater than the current ratio.
E)Measures return on assets.

Question 13

A company has sales of $695,000 and cost of goods sold of $278,000.Its gross profit equals:

A)$(417,000).
B)$695,000.
C)$278,000.
D)$417,000.
E)$973,000.

Question 14

The following statements regarding gross profit are true except:

A)Gross profit is also called gross margin.
B)Gross profit less other operating expenses equals income from operations.
C)Gross profit is not calculated on the multiple-step income statement.
D)Gross profit must cover all operating expenses to yield a return for the owner of the business.
E)Gross profit equals net sales less cost of goods sold.

Question 15

Beginning inventory plus net purchases is:

A)Cost of goods sold.
B)Merchandise (goods)available for sale.
C)Ending inventory.
D)Sales.
E)Shown on the balance sheet.

Question 16

Quick assets are defined as:

A)Cash,short-term investments,and inventory.
B)Cash,short-term investments,and current receivables.
C)Cash,inventory,and current receivables.
D)Cash,noncurrent receivables,and prepaid expenses.
E)Accounts receivable,inventory,and prepaid expenses.

Question 17

Liquidity problems are likely to exist when a company's acid-test ratio:

A)Is less than the current ratio.
B)equals 1.
C)Is higher than 1.
D)Is substantially lower than 1.
E)Is higher than the current ratio.

Question 18

The current period's ending inventory is:

A)The next period's beginning inventory.
B)The current period's cost of goods sold.
C)The prior period's beginning inventory.
D)The current period's net purchases.
E)The current period's beginning inventory.

Question 19

The following statements are true regarding the operating cycle of a merchandising company except:

A)The operating cycle begins with the purchase of merchandise.
B)The operating cycle is shortened by credit sales.
C)The operating cycle ends with the collection of cash from the sale of merchandise.
D)The operating cycle can vary in length among different merchandising companies.
E)The operating cycle sometimes involves accounts receivable.

Question 20

A company's gross profit was $83,750 and its net sales were $347,800.Its gross margin ratio equals:

A)4.2%.
B)24.1%.
C)75.9%.
D)$83,750.
E)$264,050.

Question 21

A company purchased $1,800 of merchandise on July 5 with terms 2/10,n/30.On July 7,it returned $200 worth of merchandise.On July 8,it paid the full amount due.The amount of the cash paid on July 8 equals:

A)$200.
B)$1,564.
C)$1,568.
D)$1,600.
E)$1,800.

Question 22

A company purchased $1,800 of merchandise on July 5 with terms 2/10,n/30.On July 7,it returned $200 worth of merchandise.On July 28,it paid the full amount due.The amount of the cash paid on July 28 equals:

A)$200.
B)$1,564.
C)$1,568.
D)$1,600.
E)$1,800.

Question 23

A company purchased $4,000 worth of merchandise.Transportation costs were an additional $350.The company later returned $275 worth of merchandise and paid the invoice within the 2% cash discount period.The total amount paid for this merchandise is:

A)$3,725.00.
B)$3,925.00.
C)$3,995.00.
D)$4,000.50.
E)$4,075.00.

Question 24

A company's net sales were $676,600,its cost of goods sold was $236,810 and its net income was $33,750.Its gross margin ratio equals:

A)5%.
B)9.6%.
C)35%.
D)65%.
E)285.7%.

Question 25

A debit to Sales Returns and Allowances and a credit to Accounts Receivable:

A)Reflects an increase in amount due from a customer.
B)Recognizes that a customer returned merchandise and/or received an allowance.
C)Requires a debit memorandum to recognize the customer's return.
D)Is recorded when a customer takes a discount.
E)Reflects a decrease in amount due to a supplier.

Question 26

The amount recorded for merchandise inventory includes all of the following except:

A)Purchase discounts.
B)Returns and allowances.
C)Freight costs paid by the buyer.
D)Freight costs paid by the seller.
E)Trade discounts.

Question 27

A debit memorandum is:

A)Required whenever a journal entry is recorded.
B)The source document for the purchase of merchandise inventory.
C)Required when a purchase discount is granted.
D)The document a buyer issues to inform the seller of a debit made to the seller's account in the buyer's records.
E)Not necessary in a perpetual inventory system.

Question 28

Sales returns:

A)Refer to merchandise that customers return to the seller after the sale.
B)Refer to reductions in the selling price of merchandise sold to customers.
C)Represent cash discounts.
D)Represent trade discounts.
E)Are not recorded under the perpetual inventory system until the end of each accounting period.

Question 29

Fragment Company is a wholesaler that sells merchandise in large quantities.Its catalog indicates a list price of $300 on a particular product and a 40% trade discount is offered for quantity purchases of 50 units or more.The cost of shipping the merchandise is $7 per unit under terms FOB shipping point.If a customer purchases 100 units of this product,what is the amount of sales revenue that Fragment will record from this sale?

A)$18,000
B)$30,000
C)$18,700
D)$29,300
E)$30,700

Question 30

All of the following statements regarding sales returns and allowances are true except:

A)A reduction is the selling price because of damaged merchandise is included in sales returns and allowances.
B)There is no relationship between sales returns and allowances and the possibility of lost future sales.
C)Sales returns and allowances are recorded in a separate contra-revenue account.
D)Sales returns and allowances are rarely disclosed in published financial statements.
E)Sales returns and allowances are closed to the Income Summary account.

Question 31

A buyer failed to take advantage of the vendor's credit terms of 2/15,n/45,but instead paid the invoice in full at the end of 60 days.By not taking advantage of the cash discount,the equivalent annual interest lost on the amount of the purchase is:

A)12.2%
B)16.2%
C)18.9%
D)24.3%
E)24.5%

Question 32

A company purchased $1,800 of merchandise on July 5 with terms 2/10,n/30.On July 7,it returned $200 worth of merchandise.On July 28,it paid the full amount due.The correct journal entry to record the payment on July 28 is:

A)Debit Merchandise Inventory $1,600;credit Cash $1,600.
B)Debit Cash $1,600;credit Accounts Payable $1,600.
C)Debit Accounts Payable $1,600;credit Merchandise Inventory $32;credit Cash $1,568.
D)Debit Accounts Payable $1,800;credit Cash $1,800.
E)Debit Accounts Payable $1,600;credit Cash $1,600.

Question 33

A company purchased $1,800 of merchandise on July 5 with terms 2/10,n/30.On July 7,it returned $200 worth of merchandise.On July 28,it paid the full amount due.The correct journal entry to record the merchandise return on July 7 is:

A)Debit Merchandise Inventory $1,600;credit Cash $1,600.
B)Debit Merchandise Inventory $200;credit Accounts Payable $200.
C)Debit Merchandise Inventory $200;credit Sales Returns $200.
D)Debit Accounts Payable $200;credit Merchandise Inventory $200.
E)Debit Accounts Payable $1,800;credit Purchase Returns $200;credit Merchandise Inventory $1,600.

Question 34

A company uses the perpetual inventory system and recorded the following entry: This entry reflects a:

A)Purchase of merchandise on credit.
B)Return of merchandise.
C)Sale of merchandise on credit.
D)Payment of the account payable less a 2% cash discount taken.
E)Payment of the account payable less a 1% cash discount taken.

Question 35

A trade discount is:

A)A term used by a purchaser to describe a cash discount given to customers for prompt payment.
B)A reduction in selling price below the list price.
C)A term used by a seller to describe a cash discount granted to customers for prompt payment.
D)A reduction in price for prompt payment.
E)Also called a rebate.

Question 36

The credit terms 2/10,n/30 are interpreted as:

A)2% cash discount if the amount is paid within 10 days,or the balance due in 30 days.
B)10% cash discount if the amount is paid within 2 days,or the balance due in 30 days.
C)30% discount if paid within 2 days.
D)30% discount if paid within 10 days.
E)2% discount if paid within 30 days.

Question 37

Mega Skateboard Supplier had net sales of $2.8 million,its cost of goods sold was $1.6 million,and its net income was $0.9 million.Its gross margin ratio equals:

A)32%.
B)175%.
C)43%.
D)57%.
E)56%.

Question 38

Jasper Company is a wholesaler that buys merchandise in large quantities.Its supplier's catalog indicates a list price of $500 on merchandise Jasper intends to purchase,and offers a 30% trade discount for large quantity purchases.The cost of shipping for the merchandise is $7 per unit.Jasper's total purchase price per unit will be:

A)$507
B)$350
C)$357
D)$343
E)$493

Question 39

A company had net sales of $752,000 and cost of goods sold of $543,000.Its net income was $17,530.The company's gross margin ratio equals:

A)18.9%
B)24.5%
C)27.8%
D)34.7%
E)35.2%

Question 40

A company purchased $1,800 of merchandise on July 5 with terms 2/10,n/30.On July 7,it returned $200 worth of merchandise.On July 28,it paid the full amount due.The correct journal entry to record the purchase on July 5 is:

A)Debit Merchandise Inventory $1,600;credit Cash $1,600.
B)Debit Merchandise Inventory $1,800;credit Accounts Payable $1,800.
C)Debit Merchandise Inventory $1,800;credit Sales Returns $200;credit Cash $1,600.
D)Debit Accounts Payable $1,800;credit Merchandise Inventory $1,800.
E)Debit Accounts Payable $1,800;credit Purchase Returns $200;credit Merchandise Inventory $1,600.

Question 41

Sales less sales discounts less sales returns and allowances equals:

A)Net purchases.
B)Cost of goods sold.
C)Net sales.
D)Gross profit.
E)Net income.

Question 42

On May 1,Shilling Company sold merchandise in the amount of $5,800 to Anders,with credit terms of 2/10,n/30.The cost of the items sold is $4,000.Shilling uses the perpetual inventory system.The journal entry or entries that Shilling will make on May 1 is:

A)
B)
C)
D)

Question 43

All of the following statements regarding inventory shrinkage are true except:

A)Inventory shrinkage refers to the loss of inventory.
B)Inventory shrinkage is determined by comparing a physical count of inventory with recorded inventory amounts.
C)Inventory shrinkage is recognized by debiting an operating expense.
D)Inventory shrinkage is recognized by debiting Cost of Goods Sold.
E)Inventory shrinkage can be caused by theft or deterioration.

Question 44

Which of the following accounts is used in the periodic inventory system but not used in the perpetual inventory system?

A)Merchandise Inventory
B)Sales
C)Sales Returns and Allowances
D)Accounts Payable
E)Purchases

Question 45

On July 1,Ferguson Company sold merchandise in the amount of $5,800 to Tracey Company,with credit terms of 2/10,n/30.The cost of the items sold is $4,000.Ferguson uses the perpetual inventory system.On July 5,Tracey returns some of the merchandise.The selling price of the merchandise is $500 and the cost of the merchandise returned is $350.The entry or entries that Ferguson must make on July 5 is:

A)
B)
C)
D)

Question 46

Garza Company had sales of $135,000,sales discounts of $2,000,and sales returns of $3,200.Garza Company's net sales equals:

A)$5,200.
B)$129,800.
C)$133,000.
D)$135,000.
E)$140,200.

Question 47

Juniper Company uses a perpetual inventory system.The company purchased $9,750 of merchandise on August 7 with terms 1/10,n/30.On August 11,it returned $1,500 worth of merchandise.On August 16,it paid the full amount due.The correct journal entry to record the purchase on August 7 is:

A)Debit Merchandise Inventory $9,750;credit Cash $9,750.
B)Debit Accounts Payable $9,750;credit Merchandise Inventory $9,750.
C)Debit Merchandise Inventory $9,750;credit Sales Returns $1,500;credit Cash $8,250.
D)Debit Merchandise Inventory $9,750;credit Accounts Payable $9,750.
E)Debit Accounts Payable $8,250;debit Purchase Returns $1,500;credit Merchandise Inventory $9,750.

Question 48

A company records the following journal entry: debit Cash $1,470,debit Sales Discounts $30,and credit Accounts Receivable $1,500.This means that a customer has taken what percentage cash discount for early payment?

A)1%
B)2%
C)5%
D)10%
E)15%

Question 49

Which of the following accounts would be closed at the end of the accounting period with a debit?

A)Sales Discounts.
B)Sales Returns and Allowances.
C)Cost of Goods Sold.
D)Operating Expenses.
E)Sales.

Question 50

An income statement that includes cost of goods sold as another expense and shows only one subtotal for total expenses is a:

A)Balanced income statement.
B)Single-step income statement.
C)Multiple-step income statement.
D)Combined income statement.
E)Simplified income statement.

Question 51

Prentice Company had cash sales of $94,275,credit sales of $83,450,sales returns and allowances of $1,700,and sales discounts of $3,475.Prentice's net sales for this period equal:

A)$94,275.
B)$172,550.
C)$174,250.
D)$176,025.
E)$177,725.

Question 52

Juniper Company uses a perpetual inventory system.The company purchased $9,750 of merchandise on August 7 with terms 1/10,n/30.On August 11,it returned $1,500 worth of merchandise.On August 26,it paid the full amount due.The amount of the cash paid on August 26 equals:

A)$8,167.50.
B)$9,652.50.
C)$9,750.00.
D)$8,250.00.
E)$8,152.50.

Question 53

Expenses that support the overall operations of a business and include the expenses relating to accounting,human resource management,and financial management are called:

A)Cost of goods sold.
B)Selling expenses.
C)Purchasing expenses.
D)General and administrative expenses.
E)Non-operating activities.

Question 54

Expenses to promote sales by displaying and advertising merchandise,make sales,and deliver goods to customers are known as:

A)General and administrative expenses.
B)Cost of goods sold.
C)Selling expenses.
D)Purchasing expenses.
E)Non-operating activities.

Question 55

A company has net sales of $752,000 and cost of goods sold of $543,000.Its net income is $17,530.The company's gross margin and operating expenses,respectively,are:

A)$209,000 and $191,470
B)$191,470 and $209,000
C)$525,470 and $227,000
D)$227,000 and $525,470
E)$734,000 and $191,470

Question 56

Multiple-step income statements:

A)Are required by the FASB and IASB.
B)Contain more detail than a simple listing of revenues and expenses.
C)Are required for the periodic inventory system.
D)List cost of goods sold as an operating expense.
E)Are only used in perpetual inventory systems.

Question 57

Juniper Company uses a perpetual inventory system.The company purchased $9,750 of merchandise on August 7 with terms 1/10,n/30.On August 11,it returned $1,500 worth of merchandise.On August 16,it paid the full amount due.The amount of the cash paid on August 16 equals:

A)$8,167.50.
B)$9,652.50.
C)$9,750.00.
D)$8,250.00.
E)$8,152.50.

Question 58

Juniper Company uses a perpetual inventory system.The company purchased $9,750 of merchandise on August 7 with terms 1/10,n/30.On August 11,it returned $1,500 worth of merchandise.On August 16,it paid the full amount due.The correct journal entry to record the payment on August 16 is:

A)Debit Merchandise Inventory $8,250;credit Cash $8,250.
B)Debit Cash $8,250;credit Accounts Payable $8,250.
C)Debit Accounts Payable $8,250;credit Merchandise Inventory $82.50;credit Cash $8,167.50.
D)Debit Accounts Payable $9,750;credit Merchandise Inventory $97.50;credit Cash $9,652.50.
E)Debit Accounts Payable $8,167.50;credit Cash $8,167.50.

Question 59

Juniper Company uses a perpetual inventory system.The company purchased $9,750 of merchandise on August 7 with terms 1/10,n/30.On August 11,it returned $1,500 worth of merchandise.On August 26,it paid the full amount due.The correct journal entry to record the merchandise return on August 11 is:

A)Debit Accounts Payable $1,500;credit Cash $1,500.
B)Debit Accounts Payable $1,500;credit Merchandise Inventory $1,500.
C)Debit Merchandise Inventory $1,500;credit Sales Returns $1,500.
D)Debit Merchandise Inventory $1,500;credit Cash $1,500.
E)Debit Accounts Payable $1,500;credit Purchase Returns $1,500.

Question 60

On May 1,Anders Company purchased merchandise in the amount of $5,800 from Shilling,with credit terms of 2/10,n/30.Anders uses the perpetual inventory system.The journal entry or entries that Anders will make on May 1 is:

A)
B)
C)
D)

Question 61

Using the following year-end information for Bauman,LLC,calculate the current ratio and acid-test ratio:

A)3.01 and 1.21
B)3.16 and .97
C)3.04 and 1.21
D)1.09 and 4.77
E)3.16 and 1.21

Question 62

Cushman Company had $800,000 in sales,sales discounts of $12,000,sales returns and allowances of $18,000,cost of goods sold of $380,000,and $275,000 in operating expenses.Net income equals:

A)$770,000.
B)$402,000.
C)$390,000.
D)$115,000.
E)$408,000.

Question 63

All of the following statements related to U.S.GAAP and IFRS are true except:

A)Accounting for basic inventory transactions is the same under the two systems.
B)The closing process for merchandisers is the same under both systems.
C)U.S.GAAP offers little guidance about the presentation order of expenses.
D)Neither system requires separate disclosure of items when their size,nature,or frequency are important.
E)Neither system defines operating income.

Question 64

Cushman Company had $800,000 in sales,sales discounts of $12,000,sales returns and allowances of $18,000,cost of goods sold of $380,000,and $275,000 in operating expenses.Gross profit equals:

A)$770,000.
B)$115,000.
C)$390,000.
D)$402,000.
E)$408,000.

Question 65

A company's current assets are $23,420,its quick assets are $13,890 and its current liabilities are $12,220.Its acid-test ratio equals:

A)0.88.
B)1.91.
C)1.14.
D).52.
E)1.41.

Question 66

A company purchases merchandise with a catalog price of $20,000.The company receives a 35% trade discount from the seller.The seller also offers credit terms of 2/10,n/30.Assuming no returns were made and that payment was made within the discount period,what is the net cost of the merchandise?

A)$13,720.
B)$19,600.
C)$6,860.
D)$13,000.
E)$12,740.

Question 67

Cushman Company had $800,000 in net sales,$350,000 in gross profit,and $200,000 in operating expenses.Cost of goods sold equals:

A)$150,000.
B)$450,000.
C)$800,000.
D)$350,000.
E)$200,000.

Question 68

A company purchased $10,000 of merchandise on June 15 with terms of 3/10,n/45.On June 20,it returned $800 of that merchandise.On June 24,it paid the balance owed for the merchandise taking any discount it was entitled to.The cash paid on June 24 equals:

A)$8,924.
B)$9,700.
C)$10,000.
D)$9,800.
E)$8,724.

Question 69

A company purchased $10,000 of merchandise on June 15 with terms of 3/10,n/45,and FOB shipping point.The freight charge was $500.On June 20,it returned $800 of that merchandise.On June 24,it paid the balance owed for the merchandise taking any discount it is entitled to.The cash paid on June 24 equals:

A)$9,224.
B)$10,200.
C)$10,500.
D)$10,300.
E)$9,424.

Question 70

A company has net sales of $825,000 and cost of goods sold of $547,000.Its net income is $98,500.The company's gross margin and operating expenses,respectively,are:

A)$209,000 and $191,470
B)$278,000 and $179,500
C)$278,000 and $98,500
D)$179,500 and $98,500
E)$645,500 and $179,500

Question 71

On March 12,Klein Company sold merchandise in the amount of $7,800 to Babson Company,with credit terms of 2/10,n/30.The cost of the items sold is $4,500.Klein uses the perpetual inventory system.The journal entry or entries that Klein will make on March 12 is:

A)
B)
C)
D)

Question 72

A company's net sales are $775,420,its costs of goods sold are $413,890,and its net income is $117,220.Its gross margin ratio equals:

A)46.6%.
B)53.4%.
C)28.3%.
D)31.5%.
E)40.5%.

Question 73

On March 12,Klein Company sold merchandise in the amount of $7,800 to Babson Company,with credit terms of 2/10,n/30.The cost of the items sold is $4,500.Klein uses the perpetual inventory system.Babson pays the invoice on March 17,and takes the appropriate discount.The journal entry that Klein makes on March 17 is:

A)
B)
C)
D)

Question 74

On September 12,Vander Company sold merchandise in the amount of $5,800 to Jepson Company,with credit terms of 2/10,n/30.The cost of the items sold is $4,000.Vander uses the periodic inventory system.On September 14,Jepson returns some of the merchandise.The selling price of the returned merchandise is $500 and the cost of the merchandise returned is $350.The entry or entries that Vander must make on September 14 is:

A)
B)
C)
D)

Question 75

On March 12,Klein Company sold merchandise in the amount of $7,800 to Babson Company,with credit terms of 2/10,n/30.The cost of the items sold is $4,500.Klein uses the perpetual inventory system.On March 15,Babson returns some of the merchandise.The selling price of the merchandise is $600 and the cost of the merchandise returned is $350.Babson pays the invoice on March 20,and takes the appropriate discount.The amount that Klein receives from Babson on March 20 is:

A)$7,800.
B)$7,644.
C)$7,044.
D)$7,056.
E)$7,200.

Question 76

When preparing an unadjusted trial balance using a periodic inventory system,the amount shown for Merchandise Inventory is:

A)The ending inventory amount.
B)The beginning inventory amount.
C)Equal to the cost of goods sold.
D)Equal to the cost of goods purchased.
E)Equal to the gross profit.

Question 77

On March 12,Klein Company sold merchandise in the amount of $7,800 to Babson Company,with credit terms of 2/10,n/30.The cost of the items sold is $4,500.Klein uses the perpetual inventory system.On March 15,Babson returns some of the merchandise.The selling price of the returned merchandise is $600 and the cost of the merchandise returned is $350.The entry or entries that Klein must make on March 15 is:

A)
B)
C)
D)

Question 78

On September 12,Vander Company sold merchandise in the amount of $5,800 to Jepson Company,with credit terms of 2/10,n/30.The cost of the items sold is $4,000.Vander uses the periodic inventory system.The journal entry or entries that Vander will make on September 12 is:

A)
B)
C)
D)

Question 79

On September 12,Vander Company sold merchandise in the amount of $5,800 to Jepson Company,with credit terms of 2/10,n/30.The cost of the items sold is $4,000.Vander uses the periodic inventory system.On September 14,Jepson returns some of the merchandise.The selling price of the merchandise is $500 and the cost of the merchandise returned is $350.Jepson pays the invoice on September 18,and takes the appropriate discount.The journal entry that Vander makes on September 18 is:

A)
B)
C)
D)

Question 80

On March 12,Klein Company sold merchandise in the amount of $7,800 to Babson Company,with credit terms of 2/10,n/30.The cost of the items sold is $4,500.Klein uses the perpetual inventory system.On March 15,Babson returns some of the merchandise.The selling price of the merchandise is $600 and the cost of the merchandise returned is $350.Babson pays the invoice on March 20,and takes the appropriate discount.The journal entry that Klein makes on March 20 is:

A)
B)
C)
D)