QUIZ 21 MERCHANDISING

Request edit access

JavaScript isn't enabled in your browser, so this file can't be opened. Enable and reload.

(Optional) Last name, First name

(Optional) Name of School

A sales invoice included the following information: merchandise price, P4,000; transportation, P300; terms 1/10, n/eom, FOB shipping point. Assuming that a credit for merchandise returned of P600 is granted prior to payment, that the transportation is prepaid by the seller, and that the invoice is paid within the discount period, what is the amount of cash received by the seller?

1 point

P3,366

P3,400

P3,666

P3,950

Clear selection

Which of the following accounts usually has a debit balance?

1 point

Purchase Discounts

Sales tax Payable

Allowance for Doubtful Accounts

Transportation-In

Clear selection

Merchandise is sold for cash. The selling price of the merchandise is P2,000 and the sale is subject to a 5% state sales tax. The journal entry to record the sale would include

1 point

A debit to Cash for P2,000.

A credit to Sales for P2,100.

A credit to Sales Tax Payable for P100.

Clear selection

If the buyer is to pay the transportation costs of delivering merchandise, delivery terms are stated as

1 point

FOB shipping point

FOB destination

FOB n/30

FOB buyer

Clear selection

If the seller is to pay the transportation costs of delivering merchandise, the delivery terms are stated as

1 point

FOB shipping point

FOB destination

FOB n/30

FOB seller

Clear selection

If title to merchandise purchases passes to the buyer when the goods are shipped from the seller, the terms are

1 point

n/30

FOB shipping point

FOB destination

consigned

Clear selection

Merchandise with an invoice price of P4000 is purchased on June 2 subject to terms of 2/10, n/30, FOB destination. Transportation costs paid by the seller totaled P150. What is the cost of the merchandise if paid on June 12, assuming the discount is taken?

1 point

P4,150

P4,070

P4,067

P3,920

Clear selection

When goods are shipped FOB destination and the seller pays the transportation charges, the buyer

1 point

journalizes a reduction for the cost of the merchandise.

journalizes a reimbursement to the seller.

does not take a discount.

makes no journal entry for the transportation.

Clear selection

X sold Y merchandise on account FOB shipping point, 2/10, net 30, for P10,000. X prepaid the P200 shipping charge. Which of the following entries does X make to record this sale?

1 point

Accounts Receivable-Y, debit P10,000; Sales, credit P10,000

Accounts Receivable-Y, debit P10,000; Sales, credit P10,000, and Accounts Receivable-Y, debit P200; Cash, credit P200

Accounts Receivable-Y, debit P10,400; Sales, credit P10,400

Accounts Receivable-Y, debit P10,000; Sales, credit P10,000, and Transportation Out, debit P200; Cash, credit P200

Clear selection

X sold Y merchandise on account FOB shipping point, 2/10, net 30, for P10,000. X prepaid the P200 shipping charge. Using the perpetual inventory method, which of the following entries will Y make if Y pays within the discount period?

1 point

Accounts Payable-X, debit P10,000; Transportation In, credit P200; Cash, credit P9,800

Accounts Payable-X, debit P10,200; Merchandise Inventory, credit P200; Cash, credit P10,000

Accounts Payable-X, debit P10,000; Transportation In, debit P200; Cash, credit P10,200

Accounts Payable-X, debit P10,200; Merchandise Inventory, debit P200; Cash, credit P10,400

Clear selection

Clear form

Never submit passwords through Google Forms.

This content is neither created nor endorsed by Google. - Terms of Service - Privacy Policy

Does this form look suspicious? Report

Forms