Accounting chapter 5- periodic and perpetual inventory syste

In a perpetual inventory system, if merchandise is returned to a supplier:

• Purchase returns is credited.
• Inventory is credited.
• Purchase discounts is credited.
• Inventory is debited.

The Hamlet Company uses the periodic inventory system. Information for 2017 is as follows: 
Sales$     2,650,000
Beginning inventory  680,000
Purchases 1,200,000
Purchase returns 12,000
Ending inventory 740,000
Hamlet's cost of goods sold are: 

• $1,522,000
• $1,188,000
• $1,140,000
• $1,128,000

Symington Corporation uses the periodic inventory system. At December 31, 2017, the end of the company's fiscal year, a physical count of inventory revealed an ending inventory balance of $320,000. The following items were not included in the physical count:
Goods held on consignment at Murphy Corporation$23,000Merchandise shipped to a customer on 12/30 f.o.b. destination
     (merchandise arrived at customer's location on 1/3/07)12,000Merchandise shipped to a customer on 12/29 f.o.b. shipping point
     (merchandise arrived at customer's location on 1/2/07)6,000Merchandise purchased from a supplier, shipped f.o.b. destination
     on 12/29, in transit at year-end $24,000
Ending Inventory would be?

• $320,000
• $379,000
• $355,000
• $332,000

By the gross method of accounting for purchase discounts, a discount not taken is recorded as:

• Purchases.
• Interest expense.
• A reduction in sales revenue.
• None of the above.

By the net method of accounting for purchase discounts, a discount not taken is recorded as:

• Purchases.
• Interest expense.
• A reduction in sales revenue.
• None of the above.

Identify the statement below concerning the LIFO inventory method that is not true.

• In the absence of changes in costs, the results of using LIFO would be identical to those obtained by FIFO.
• LIFO will provide a close matching of current revenues with current costs since the most recent costs are expensed first.
• The ending inventory under LIFO will tend to approximate replacement cost.
• In periods of declining costs, cost of goods sold using LIFO will produce a lower cost of goods sold than FIFO.

• $12,900
• $14,400
• $12,000
• $14,000

The cost of inventory at the end of March applying the LIFO method is:

• $12,900
• $14,400
• $12,000
• $14,000

The cost of inventory at the end of March applying the average cost method is:

• $12,900
• $14,400
•                       $12,000
• $14,000

If Sanfillipo instead used the perpetual inventory system, cost of goods sold for the month of March applying the LIFO inventory method would be:

• $22,400
• $21,500
• $21,600
• $24,000