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WorksheetsFABM 2 - Unit Review No. 3
Total questions: 15
Worksheet time: 16mins
All sales, for cash or on credit, can be recorded in the general journal.
True
False
Reductions in the price of merchandise granted by the seller because of defects or other problems with the merchandise are called purchase returns & allowances.
TRUE
FALSE
Purchase Discount and Purchase Returns and Allowances are contra-sales account.
TRUE
FALSE
Cash discounts are offered to encourage prompt payment by customers who buy on account.
TRUE
FALSE
2, 1/10, n/30
The 2 in the term above is an example of a cash discount.
TRUE
FALSE
2/10 EOM, N/60
What do you mean by this term?
Purchases is an account under
(a)
Match the following account titles to its rightful category.
Freight-In
Income
Sales Returns and Allowances
Expense
FOB Shipping Point
Seller
Sales
Buyer
FOB Destination
Contra-Sales
Label the journal correctly. Below are the journal entries.
June 1 - Purchased merchandise from Sullivan Co. P234,500. Terms: 1, 2/10, n/30
Purchases
Accounts Payable
P232,155
A sales invoice prepared by the seller is called purchase invoice by the buyer.
TRUE
FALSE
FOB SHIPPING POINT means that transportation charges are paid by the seller.
TRUE
FALSE
is credited when the merchandise is returned in the buyer's POV.
(a)
A purchase of merchandise for P300 with a trade discount of 10% would require a debit of Purchases of
P330
P300
P297
P270
Merchandise was purchased on account from Jacob's Distributors on May 17 of the current year. The purchase prices was P2,000, subject to 3% discount and credit terms of 2/10, 1/15, n/30.
1. Calculate the net amount to record the invoice, subject to the 3% trade discount.
2. Calculate the amount to be paid on this invoice within the discount period.
3. Journalize the purchase on May 17.
4. Journalize the payment on May 27.
On a scale of 1 - 4, where
1 is VERY POOR UNDERSTANDING
2 is POOR UNDERSTANDING
3 is GOOD UNDERSTANDING
4 is VERY GOOD UNDERSTANDING
How will you rate your level of understanding of the topics discussed under Merchandising Business (Periodic Inventory)?
1 is VERY POOR UNDERSTANDING
2 is POOR UNDERSTANDING
3 is GOOD UNDERSTANDING
4 is VERY GOOD UNDERSTANDING
