WorksheetsAccounting Cycle (Merchandising Business) I
Total questions: 15
Worksheet time: 11mins
A form of discount granted by a retailer to encourage a customer to buy the goods is called:
Purchase discount
Trade discount
Cash discount
Sales discount
Which of the following is NOT part of the cost of inventory purchased?
Taxes and customer duties paid on the goods purchased
Freight in
Freight out
Insurance that is shouldered by the buyer
If the term of the sale is F.O.B destination. goods that are in transit by the end of the year belongs to the
Buyer
Seller
Carrier
No Correct Answer
Which of the following is NOT part of the inventory of the business?
Goods in transit from the supplier. Term: F.O.B shipping point.
Goods in transit to the customer. Term: F.O.B destination.
Goods that are ready for shipment to the customer.
Goods held for sale on behalf of Monte Company, a consignor.
A customer purchased product that has a catalog price of P20,000. The term of the purchase was: 10%, 15%, 1/10, n/15. How much would be the invoice price of the purchase?
P20,000 x 75%?
P20,000 x 90% x 85% x 99%
P20,000 x 90% x 85%
P20,000 x 75% x 99%
A merchandising company:
Earns profit from commissions only.
Earns net income by buying and selling merchandise.
Receives fees in exchange for services
Earns profit from fares only.
If an item has an invoice price of P12,500 and the seller had a gross profit of 25% of cost, what was the cost of dales?
P16,666.67
P15,625
P9,375
P10,000
The credit terms 2/10, n/30 are interpreted as:
10% cash discount if the amount is paid within 2 days, with balance due in 30 days.
30% discount if paid within 10 days.
30% discount if paid within 2 days.
2% cash discount if the amount is paid within 10 days, with the balance due in 30 days.
A supporting document prepared by a seller that is used as an evidence of a downward adjustment in the amount that is due from a customer is known as:
Credit memorandum
Debit memorandum
Receiving report
Purchase order
If a retailer buys item at an acquisition cost of P200 and later sells it at a 25% mark-up, the selling price of the item is:
P275
P250
P225
P266.67
Sales returns:
Represent trade discounts
Refer to reductions in the selling price of merchandise sold to customers.
Represent cash discounts.
Refer to merchandise that customers return to the seller after the sale.
Sales Returns and Allowances:
Are usually not reported in published financial statements.
Are recorded in separate contra-revenue accounts.
Can provide useful information about dissatisfied customers and the possibility of lost future sales.
All of the answers correct
A closing entry would close any debit balance in:
Sales discounts
Sales Returns and Allowances
Cost of Goods Sold
All of the answers correct
A supporting document prepared by a buyer that is used as an evidence of a downward adjustment in the amount that is due to the seller is known as:
Purchase order
Receiving report
Debit memo
Credit memorandum
Which cost method is not suited for use under the periodic system?
Weighted average method
Specific identification method
First-in, first-out method
Moving weighted average method
