PENG AKT 2020 CH 5 10 SOAL

If sales revenue are $ 200.000, cost of goods sold is $ 90.000, and operating expenses

are $ 50.000, the gross profit is

• a. $ 100.000

• b. $ 110.000

• c. $ 105.000

• d. $ 60.000

Gross profit will result if:

• a. operating expenses are less then net income.

• b. sales revenues are greater than operating expenses.

• c. sales revenues are greater than cost of goods sold.

• d. operating expenses are greater than cost of goods sold.

When goods are purchased for resale by a company using a periodic  inventory system: 

• a. purchases on account are debited to Inventory.

• b. purchases on account are debited to Purchases.

• c. purchase returns are debited to Purchase Returns and Allowances. 

• d. freight costs are debited to Purchases. 

A credit sale of €6.500 is made on June 13, terms 2/10, net/30. A return of  €1.000 is granted on June 16.The amount received as payment in full on June  23 is: 

• a. €6,000. 

• b. €6,390.

• c. €5,390.

• d. €6,500.

The seller places the goods free on board to the buyer's place of bussiness, and the reseller pays the

freight is the real means of ....

• a. Sales returns and allowances

• b. Sales Discounts

• c. Inventory

• d. FOB Destination

2.) On August 6, Zee company returns defective goods to the Burj Company with a selling price of

$2500. Record the transaction on the books of Burj Company …

• a. Sales Returns And Allowances 2500

  Account Receivable 2500

• B. Inventory 2500

  Account Receivable 2500

• C. Service Revenue 2500

  Inventory 2500

• D. Sales Disccounts 2500

  Service Revenue 2500

On August 3, Zhu Company buys merchandise on account from Gao Company. The

selling price of the goods is $10,000. Record the transaction on the books of Gao

Company…

• a. Sales Revenue 10,000

  Accouts Receivable 10,000

• b. Accounts Receivable 10,000

  Sales returns and allowances 10,000

• c. Accounts Receivable 10,000

  Sales Revenue 10,000

• d. Sales Discounts 10,000

To determine the cost of goods on sold under a periodic inventory system, the following

steps are necessary, except…

• a. Determine the cost of goods on hand at the beginning of the accounting period

• b. Add to it the cost of goods purchased

• c. Subtract the cost of goods on hand at the end of the accounting period

• d. Determine the cost of goods sold each time a sale occurs

If the buyer pays the invoice price before the 10-day discount period, and gets a 2%  discount, while the payment limit is no later than 30 days, then the payment terms are  ..... 

• a. n/30

• b. n/10

• c. 1/10, n/30

• d. 2/10, n/30 

On July 7, Hello Kitty Co., Ltd. Purchased $ 7,000 of merchandise from Tom and Jerry  Company, FOB Shipping Point, terms 2/10, n/30. Prepare the jornal entry to record this  transaction …

• a. Inventory 7,000 

  Accounts Receivable 7,000

• b. Equipment 7,000 

  Accounts Receivable 7,000

• c. Inventory 7,000 

  Accounts Payable 7,000

• d. Supplies 7,000 

  Accounts Payable 7,000