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41.              Use this information to answer the following question. Account Name Debit

Question : 41.              Use this information to answer the following question. Account Name Debit : 1410840

 

 

41.              Use this information to answer the following question.

 

Account Name

Debit

Credit

Sales

 

305,000

Sales Returns and Allowances

10,000

 

Purchases

68,000

 

Purchases Returns and Allowances

 

8,000

Freight-In

12,000

 

Selling Expenses

30,000

 

General and Administrative Expenses

110,000

 

 

In addition, beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.

 

Net sales for the period were

a.

$305,000.

b.

$275,000.

c.

$295,000.

d.

$215,000.

 

 

 

42.              Use this information to answer the following question.

 

Account Name

Debit

Credit

Sales

 

300,000

Sales Returns and Allowances

10,000

 

Purchases

50,000

 

Purchases Returns and Allowances

 

8,000

Freight-In

12,000

 

Selling Expenses

30,000

 

General and Administrative Expenses

110,000

 

 

In addition, beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.

 

Net cost of purchases for the period were

a.

$74,000.

b.

$42,000.

c.

$54,000.

d.

$66,000.

 

 

 

43.              Use this information to answer the following question.

 

Account Name

Debit

Credit

Sales

 

300,000

Sales Returns and Allowances

10,000

 

Purchases

50,000

 

Purchases Returns and Allowances

 

8,000

Freight-In

12,000

 

Selling Expenses

30,000

 

General and Administrative Expenses

110,000

 

 

In addition, beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.

 

Cost of goods sold for the period was

a.

$62,000.

b.

$50,000.

c.

$76,000.

d.

$46,000.

 

 

 

44.              Use this information to answer the following question.

 

Account Name

Debit

Credit

Sales

 

293,000

Sales Returns and Allowances

10,000

 

Purchases

68,000

 

Purchases Returns and Allowances

 

8,000

Freight-In

12,000

 

Selling Expenses

30,000

 

General and Administrative Expenses

110,000

 

 

In addition, beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.

 

Net income for the period was

a.

$173,000.

b.

$93,000.

c.

$63,000.

d.

$203,000.

 

 

 

45.              Use this information to answer the following question.

 

Account Name

Debit

Credit

Sales

 

300,000

Sales Returns and Allowances

10,000

 

Purchases

68,000

 

Purchases Returns and Allowances

 

8,000

Freight-In

12,000

 

Selling Expenses

30,000

 

General and Administrative Expenses

110,000

 

 

In addition, beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.

 

If beginning and ending merchandise inventories were ignored in computing net income, then net income would be

a.

understated by $22,000.

b.

overstated by $8,000.

c.

understated by $14,000.

d.

understated by $8,000.

 

 

 

46.              Use this information to answer the following question.

 

The selected accounts and balances for Keystone Market appear as follows:

 

Advertising Expense

$  14,000

Arthur Tatum, Capital

140,000

Arthur Tatum, Withdrawals

21,000

Freight-In

7,000

Freight-Out Expense

10,000

Interest Income

24,000

Merchandise Inventory (Jan. 1)

70,000

Merchandise Inventory (Dec. 31)

56,000

Purchases

60,000

Purchases Returns and Allowances

4,000

Rent Expense

9,000

Sales

150,000

Sales Returns and Allowances

19,000

Wages Expense

32,000

 

The amount of net sales on the income statement would be

a.

$169,000.

b.

$144,000.

c.

$131,000.

d.

$137,000.

 

 

 

47.              Use this information to answer the following question.

 

The selected accounts and balances for Keystone Market appear as follows:

 

Advertising Expense

$  14,000

Arthur Tatum, Capital

140,000

Arthur Tatum, Withdrawals

21,000

Freight-In

7,000

Freight-Out Expense

10,000

Interest Income

24,000

Merchandise Inventory (Jan. 1)

68,000

Merchandise Inventory (Dec. 31)

56,000

Purchases

60,000

Purchases Returns and Allowances

4,000

Rent Expense

9,000

 

 

Sales

150,000

Sales Returns and Allowances

19,000

Wages Expense

32,000

 

Cost of goods available for sale would appear on the income statement as

a.

$124,000.

b.

$71,000.

c.

$131,000.

d.

$61,000.

 

 

 

48.              Use this information to answer the following question.

 

The selected accounts and balances for Keystone Market appear as follows:

 

Advertising Expense

$  14,000

Arthur Tatum, Capital

140,000

Arthur Tatum, Withdrawals

21,000

Freight-In

7,000

Freight-Out Expense

10,000

Interest Income

24,000

Merchandise Inventory (Jan. 1)

70,000

Merchandise Inventory (Dec. 31)

56,000

Purchases

60,000

Purchases Returns and Allowances

4,000

Rent Expense

9,000

 

 

Sales

169,000

Sales Returns and Allowances

19,000

Wages Expense

32,000

 

Gross margin would be

a.

$80,000.

b.

$73,000.

c.

$92,000.

d.

$86,000.

 

 

 

49.              Assume a company uses the periodic inventory system and has a beginning merchandise inventory balance of $5,000, purchases of $75,000, and sales of $125,000. The company closes its records once a year on December 31. In the accounting records, the merchandise inventory account would be expected to have a balance on December 31 prior to adjusting and closing entries that was

a.

indeterminate.

b.

less than $5,000.

c.

more than $5,000.

d.

equal to $5,000.

 

 

 

50.              Chancellor Company purchased merchandize worth $900 on credit, terms n/30. What is the required journal entry to record the transaction under the periodic inventory system?

a.

Accounts Receivable900

     Purchases900

 

b.

Purchases900

     Accounts Payable900

 

c.

Merchandize Inventory 900

     Accounts Payable900

 

d.

Accounts Payable900

     Merchandize Inventory900

 

 

 

 

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