Correct answers will get all the points with a short explantation or formula nex
ID: 2373108 • Letter: C
Question
Correct answers will get all the points with a short explantation or formula next to the answers
Five questions Correct Answers get the credit, with either a small explanation or equation used
1. A company purchased $1,600 of merchandise on August 5. On August 7, it returned $700 worth of merchandise. On August 8, it paid the balance in full, taking a 4% discount. The amount of the cash paid on Mo 8 equals:
$2,208. $1,536. $700. $164. $864.2.A company had sales of $390,000 and its gross profit was $153,000. Its cost of goods sold equals:
$(237,000). $237,000. $(543,000). $153,000. $543,000.
3. On March 1, Olivera Company sold merchandise in the amount of $5,200 to Alberts, with credit terms of 5/10, n/30. The cost of the items sold is $4,400. Olivera uses the perpetual inventory system. The journal entry or entries that Olivera will make on March 1 is:
Accounts receivable 5,200 Sales 5,200 Sales 5,200 Accounts receivable 5,200 Accounts receivable 4,400 Sales 4,400 Accounts receivable 5,200 Sales 5,200 Cost of goods sold 4,400 Merchandise inventory 4,400 Sales 5,200 Accounts receivable 5,200 Cost of goods sold 4,400 Merchandise Inventory 4,400
4. A company had expenses other than cost of goods sold of $380,000. Determine sales and gross profit given cost of goods sold was $100,000 and net income was $170,000. Sales: $650,000; Gross Profit: $450,000. Sales: $270,000; Gross Profit: $650,000. Sales: $550,000; Gross Profit: $270,000. Sales: $270,000; Gross Profit: $450,000. Sales: $650,000; Gross Profit: $550,000.
5. On June 1, Olivera Company sold merchandise in the amount of $3,500 to Wyne, with credit terms of 4/10, n/30. The cost of the items sold is $2,200. Olivera uses the perpetual inventory system. Wyne pays the invoice on June 8, and takes the appropriate discount. The journal entry that Olivera makes on June 8 is:
rev: 06_26_2012 Cash 2,200 Accounts receivable 2,200 Cash 3,500 Accounts receivable 3,500 Cash 3,360 Sales discounts 140 Accounts receivable 3,500 Cash 2,112 Sales discounts 88 Accounts receivable 2,200 Cash 140 Sales discounts 140
Explanation / Answer
1. $864 4% discount on ($1600 - $700)
2. ($237000) since its subtracted from total sales on P&L statement
3.
4.sales $650000... gross profit $550000 sales = sum of cogs, net income, other exp.
gross profit = sales - cogs
5.