ACC 291T Wk 1 – Apply: Connect Homework (2021.7 New)

Prentice Company had cash sales of $94,700, credit sales of $83,700, sales returns and allowances of $1,875, and sales discounts of $3,650. Prentice’s net sales for this period equal:

Multiple Choice

$178,400.

$94,700.

$176,525.

$174,750

$172,875.

On September 12, Vander Company sold merchandise in the amount of $8,200 to Jepson Company, with credit terms of 3/10, n/30. The cost of the items sold is $5,200. Jepson uses the periodic inventory system and the gross method of accounting for purchases. The journal entry that Jepson will make on September 12 is:

Multiple Choice

Purchases       5,200

Accounts receivable            5,200

Purchases       8,200

Accounts payable        8,200

Accounts payable   5,200

Merchandise inventory        5,200

Purchases       8,200

Accounts receivable            8,200

Merchandise inventory   8,200

Accounts payable        8,200

A company purchases merchandise with a catalog price of $24,500. 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?

Multiple Choice

$13,894.

$15,606.

$8,894.

$15,925.

$8,575.

On September 12, Ryan Company sold merchandise in the amount of $6,600 to Johnson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,400. Johnson uses the periodic inventory system and the net method of accounting for purchases. The journal entry that Johnson will make on September 12 is:

Multiple Choice

Merchandise inventory   6,468

Accounts payable        6,468

Merchandise inventory   4,400

Accounts payable        4,400

Purchases       6,468

Accounts payable        6,468

Purchases       6,600

Accounts payable        6,600

Accounts payable   6,600

Merchandise inventory        6,600

A company that uses the net method of recording purchases and a perpetual inventory system purchased $3,500 of merchandise on July 5 with terms 3/10, n/30. On July 7, it returned $700 worth of merchandise. On July 28, it paid the full amount due. The correct journal entry to record the payment on July 28 is:

Multiple Choice

Debit Accounts Payable $2,800; credit Merchandise Inventory $84; credit Cash $2,716.

Debit Accounts Payable $2,716; debit Discounts Lost $84; credit Cash $2,800.

Debit Accounts Payable $3,500; credit Cash $3,500.

Debit Merchandise Inventory $2,800; credit Cash $2,800.

Debit Cash $2,800; credit Accounts Payable $2,800.

On February 3, Smart Company sold merchandise in the amount of $1,900 to Truman Company, with credit terms of 3/10, n/30. The cost of the items sold is $1,310. Smart uses the perpetual inventory system and the gross method. Truman pays the invoice on February 8, and takes the appropriate discount. The journal entry that Smart makes on February 8 is:

Multiple Choice

Cash       1,230

Accounts receivable            1,230

Cash       1,900

Accounts receivable            1,900

Cash       1,820

Sales discounts       39

Accounts receivable            1,859

Cash       1,310

Accounts receivable            1,310

Cash       1,843

Sales discounts       57

Accounts receivable            1,900

A company purchased $11,400 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point. The freight charge, $1,200, was added to the invoice amount. On June 20, it returned $1,920 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:

Multiple Choice

$12,120.

$9,224.

$10,396.

$12,020.

$12,600.

Netherland Corporation has the following unadjusted balances: Accounts Receivable, $98,000 (debit), and Allowance for Sales Discounts $480 (credit). Of the receivables, $68,000 of them are within the 3% discount period, and Netherland expects buyers to take $2,040 in future-period discounts ($68,000 × 3%) arising from this period’s sales. The adjusting entry or entries to estimate sales discounts is (are):

Multiple Choice

Accounts Receivable      98,000

Sales            98,000

Sales Discounts      68,000

Sales            68,000

Cost of Goods Sold       2,040

Inventory Returns Estimated       2,040

Sales Discounts      1,560

Allowance for Sales Discounts           1,560

Sales Discounts      2,040

Accounts receivable            2,040

Sales Discounts      2,040

Allowance for Sales Discounts           2,040

A buyer of $8,300 in merchandise inventory failed to take advantage of the vendor’s credit terms of 3/15, n/45, and instead paid the invoice in full at the end of 45 days. By not taking advantage of the cash discount, the buyer lost the discount of:

Multiple Choice

$100.

$249.

$1,245.

$830.

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:

Multiple Choice

$227,000 and $525,470

$209,000 and $227,000

$734,000 and $191,470

$525,470 and $227,000

$209,000 and $191,470