Question 1

Closing entries for a merchandising business are not similar to those for a service business.

Accepted Answer

A) True 
 B)False

Question 2

When a merchandising business is compared to a service business, the financial statement that is not affected by that change is the statement of stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 3

Complete the following data taken from the condensed income statements for merchandising Companies X, Y, and Z.

Accepted Answer

_TB2281_00
OR Rear...

Question 4

Complete the following data taken from the condensed income statements for merchandising Companies A, B, and C.

Accepted Answer

_TB2281_00
OR Rear...

Question 5

To encourage a buyer to pay before the end of the credit period, the seller may offer a

Accepted Answer

A)   purchases discount
B)   sales discount
C)   trade discount
D)   payment discountE) B) and C)
F) A) and D)

Question 6

Find the missing amounts from the income statement data for Zebtec Company. ​  ​

Accepted Answer

A)   Operating expenses: $425,000; Cost of goods sold: $495,000
B)   Operating expenses: $355,000; Cost of goods sold: $355,000
C)   Operating expenses: $535,000; Cost of goods sold: $425,000
D)   Operating expenses: $215,000; Cost of goods sold: $565,000E) A) and B)
F) B) and C)

Question 7

Journalize the following transactions for both Abbott Co. (seller) and Dalton Co. (buyer). Assume both of the companies use the perpetual inventory system.  ​

Accepted Answer

The answer of Journalize the following transactions for both Abbott...

Question 8

When the terms of sale are FOB shipping point, the buyer pays the freight charges.

Accepted Answer

A) True 
 B)False

Question 9

On March 25, Osgood Company sold merchandise on account, $10,000, terms n/30. The applicable sales tax percentage is 7.5%. Record the transaction.
​

Accepted Answer

The answer of On March 25, Osgood Company sold merchandise...

Question 10

Title to merchandise shipped FOB shipping point passes to the buyer upon delivery of the merchandise to the buyer's place of business.

Accepted Answer

A) True 
 B)False

Question 11

Marshall Supplies is a janitorial supply store that uses a perpetual inventory system. Journalize the following transactions:  ​
Journal

Accepted Answer

​ Journal ...

Question 12

Under the perpetual inventory system, a company purchases merchandise on terms 2/10, n/30. The entry to record the purchase will include a debit to Cash and a credit to Sales.

Accepted Answer

A) True 
 B)False

Question 13

Calculate the gross profit for Jefferson Company based on the following:   Sales $764,000 Selling expenses 42,500 Cost of goods sold 538,000\begin{array} { | l | r | } \hline 	ext { Sales } & \$ 764,000 \\hline 	ext { Selling expenses } & 42,500 \\hline 	ext { Cost of goods sold } & 538,000 \\hline\end{array} Sales  Selling expenses  Cost of goods sold ​$764,00042,500538,000​​

Accepted Answer

A)   $495,500
B)   $183,500
C)   $721,500
D)   $226,000 E) A) and B)
F) A) and C)

Question 14

Journalize the following transactions assuming the perpetual inventory system:  ​
​

Accepted Answer

The answer of Journalize the following transactions assuming the perpetual...

Question 15

Most companies will not take a purchase discount, because 1% or 2% discounts are insignificant.

Accepted Answer

A) True 
 B)False

Question 16

Kaden Co. sells merchandise on credit to Jase Co. for $9,600. The invoice is dated July 15 with terms of 1/15, net 45. If Jase Co. chooses not to take the discount, by when should the payment be made?

Accepted Answer

A)   July 30
B)   August 29
C)   August 15
D)   July 25E) A) and B)
F) C) and D)

Question 17

The arrangements between buyer and seller as to when payments for merchandise are to be made are called

Accepted Answer

A)   credit terms
B)   net cash
C)   cash on demand
D)   gross cashE) B) and C)
F) A) and D)

Question 18

Selected accounts and amounts appear below. Journalize the closing entry, assuming a perpetual inventory system.

Accepted Answer

The answer of Selected accounts and amounts appear below. Journalize...

Question 19

The following entry was recorded in the books of Brighty Company.  ​ What is the impact of this entry on the accounting equation?

Accepted Answer

A)   an increase in Assets and an increase in Equity
B)   an increase in Assets and an increase in Liabilities
C)   a decrease in Assets and a decrease in Liabilities
D)   a decrease in Assets and a decrease in EquityE) All of the above
F) A) and C)

Question 20

Match each of the following items (a-h)  with the appropriate definition below.
-Informs the seller of the reasons for the return of merchandise or the request for a price allowance.

Accepted Answer

A)  Freight
B)  Delivery Expense
C)  Inventory
D)  Sales discount
E)  Purchases Returns and AllowancesF) Debit memoG) Purchases discountH) Trade discountI) B) and E)
J) A) and G)

Exam 5: Accounting for Retail Businesses

The arrangements between buyer and seller as to when payments for merchandise are to be made are called

Correct AnswerverifiedShow Answer

Marshall Supplies is a janitorial supply store that uses a perpetual inventory system. Journalize the following transactions: ​ Journal

Correct Answerverified​ Journal ...View AnswerShow Answer

Complete the following data taken from the condensed income statements for merchandising Companies X, Y, and Z.

Correct Answerverified_TB2281_00 ​OR Rear...View AnswerShow Answer

Selected accounts and amounts appear below. Journalize the closing entry, assuming a perpetual inventory system.

Correct AnswerverifiedShow Answer

Title to merchandise shipped FOB shipping point passes to the buyer upon delivery of the merchandise to the buyer's place of business.

Correct AnswerverifiedShow Answer

When the terms of sale are FOB shipping point, the buyer pays the freight charges.

Correct AnswerverifiedShow Answer

Match each of the following items (a-h) with the appropriate definition below. -Informs the seller of the reasons for the return of merchandise or the request for a price allowance.

Correct AnswerverifiedShow Answer

The following entry was recorded in the books of Brighty Company. ​ What is the impact of this entry on the accounting equation?

Correct AnswerverifiedShow Answer

On March 25, Osgood Company sold merchandise on account, $10,000, terms n/30. The applicable sales tax percentage is 7.5%. Record the transaction. ​

Correct AnswerverifiedShow Answer

To encourage a buyer to pay before the end of the credit period, the seller may offer a

Correct AnswerverifiedShow Answer

Find the missing amounts from the income statement data for Zebtec Company. ​ ​

Correct AnswerverifiedShow Answer

When a merchandising business is compared to a service business, the financial statement that is not affected by that change is the statement of stockholders' equity.

Correct AnswerverifiedShow Answer

Most companies will not take a purchase discount, because 1% or 2% discounts are insignificant.

Correct AnswerverifiedShow Answer

Closing entries for a merchandising business are not similar to those for a service business.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Kaden Co. sells merchandise on credit to Jase Co. for $9,600. The invoice is dated July 15 with terms of 1/15, net 45. If Jase Co. chooses not to take the discount, by when should the payment be made?

Correct AnswerverifiedShow Answer

Complete the following data taken from the condensed income statements for merchandising Companies A, B, and C.

Correct Answerverified_TB2281_00 ​OR Rear...View AnswerShow Answer

Journalize the following transactions assuming the perpetual inventory system: ​ ​

Correct AnswerverifiedShow Answer

Journalize the following transactions for both Abbott Co. (seller) and Dalton Co. (buyer). Assume both of the companies use the perpetual inventory system. ​

Correct AnswerverifiedShow Answer

Under the perpetual inventory system, a company purchases merchandise on terms 2/10, n/30. The entry to record the purchase will include a debit to Cash and a credit to Sales.

Correct AnswerverifiedShow Answer

Correct Answer
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Marshall Supplies is a janitorial supply store that uses a perpetual inventory system. Journalize the following transactions: Journal

Correct Answer
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Journal ...
View Answer

Correct Answer
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_TB2281_00
OR Rear...
View Answer

Correct Answer
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The following entry was recorded in the books of Brighty Company. What is the impact of this entry on the accounting equation?

Correct Answer
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On March 25, Osgood Company sold merchandise on account, $10,000, terms n/30. The applicable sales tax percentage is 7.5%. Record the transaction.

Correct Answer
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Correct Answer
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Find the missing amounts from the income statement data for Zebtec Company.

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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_TB2281_00
OR Rear...
View Answer

Journalize the following transactions assuming the perpetual inventory system:

Correct Answer
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Journalize the following transactions for both Abbott Co. (seller) and Dalton Co. (buyer). Assume both of the companies use the perpetual inventory system.

Correct Answer
verified

Correct Answer
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