WorksheetsMerchandising Review
Total questions: 16
Worksheet time: 13mins
It is a type of business that involves buying and selling of goods
Merchandising Business
Service Business
Manufacturing
It is the product or good that you are selling
Supplies
Cash
Inventory
Prepaid Expense
Under periodic system, purchase of goods is recorded under the account title of
Merchandise Inventory
Sales
Purchases
Purchase Discount
It is the cost of transporting the goods shouldered by the buyer
Freight out
Delivery Expense
Purchases
Freight In
It is a discount that is not recorded in the books of seller or buyer
Cash Discount
Trade Discount
It is the original cost of the product you have sold
Purchases
Merchandise Inventory
Cost of Goods Sold
Sales
Gross profit will result if:
operating expenses are less than net income
sales revenues are greater than operating expenses.
sales revenues are greater than cost of goods sold.
operating expenses are greater than cost of goods sold.
A company has sales of $763,000 and cost of goods sold of $306,000. Its gross profit equals:
$(457,000).
$763,000.
$306,000.
$457,000.
$1,069,000.
A company purchased $3,100 of merchandise on July 4 with terms 3/10, n/30. On July 7, it returned $340 worth of merchandise. On July 13, it paid the full amount due. The amount of the cash paid on July 13 equals:
$340.
$2,667.
$2,677.
$2,760.
$3,100.
A company purchased $3,700 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $850 worth of merchandise. On July 12, it paid the full amount due. Assuming the company uses a perpetual inventory system, the correct journal entry to record the payment on July 12 is:
Debit Merchandise Inventory $2,850; credit Cash $2,850.
Debit Cash $2,850; credit Accounts Payable $2,850.
Debit Accounts Payable $2,850; credit Merchandise Inventory $57; credit Cash $2,793.
Debit Accounts Payable $2,850; credit Inventory $2,850.
Debit Accounts Payable $2,793; debit Discounts $57; credit Cash $2,850.
The steps in the accounting cycle for a merchandising company are the same as those in a service company except
an additional adjusting journal entry for inventory may be needed in a merchandising company.
closing journal entries are not required for a merchandising company.
a post-closing trial balance is not required for a merchandising company
an income statement is required for a merchandising company
Zessa Company had sales of $150,200, sales discounts of $2,250, and sales returns of $3,605. Zessa Company's net sales equals:
$5,855.
$144,345.
$147,950.
$150,200.
Carnival Company had $830,000 in sales, sales discounts of $12,450, sales returns and allowances of $18,675, cost of goods sold of $394,250, and $285,520 in operating expenses. Net income equals:
$798,875.
$150,230.
$119,105.
$181,355.
What is/are the difference(s) between periodic and perpetual inventory system?
