Finance Questions
Explore questions in the Finance category that you can ask Spark.E!
LOL Music Store uses the perpetual inventory system to account for its merchandise. On November 17, it purchased $1,000 of merchandise with terms of 2/5,n/60. If payment is made on December 21, demonstrate the required journal entry to record the payment by selecting all of the correct actions below. (Check all that apply.)
If the seller is responsible for the shipping costs of merchandise sold, the shipping terms will be specified as:
Show your understanding of a merchandiser by completing the following statement. Merchandisers earn net income by (buying/manufacturing) (1. ?) and (selling/purchasing) (2. ?) merchandise.
Determine which statements below are correct regarding merchandise available for sale during a period.(Check all that apply.)
The discount period is the time (1. ?) (before/between) the invoice date and a specified date on which the payment amount owed can be (2. ?) (increased/reduced) because of early payment.
On Dec. 7, Toys R Fun purchased $1,000 of merchandise with terms of 2/10,n/30. If payment is made on December 30, demonstrate the required journal entry for Toys R Fun to record the payment under the perpetual inventory system.
A cash discount can be summarized as a discount given to (1. ?) (buyers/creditors/sellers) to encourage them to pay (2. ?) (earlier/later/less/more).
X-Mart purchased $300 of merchandise and paid immediately. Demonstrate the journal entry to record this transaction, assuming the perpetual inventory system is used.
On June 5, X-Mart purchased $400 of merchandise with terms of 2/10,n/30. If payment is made on June 11, calculate the purchase discount that may be taken by X-Mart.
Complete the following statement. Merchandise inventory that is still available for sale is considered a(n) ________ (asset/expense/revenue) and is reported on the ____________ (balance sheet/income statement) and merchandise that is sold during the period is considered a(n) _______ (asset/expense/liability) and reported on the ____________ (balance sheet/income statement).
Review the following credit terms and identify the one that states that the buyer will receive a 3% discount if the payment is made within 15 days. Otherwise, full payment is expected within 45 days of the invoice date.
Credit terms of n/15 were printed on an invoice. Explain what this means.
merchandise that is sold during the period reported on the
merchandise that is sold during the period is considered a(n)se that is sold during the period is considered a(n)
Toys R Fun purchased $4,000 of merchandise and paid immediately. To record this transaction, Toys R Fun's accountant would debit the (1. ?) (Merchandise Inventory/Accounts Payable/Cash) account and credit the (2. ?) (Cash/Merchandise Inventory/Accounts Payable) account.
Merchandise inventory that is still available for sale is considered a(n
Merchandise inventory that is still available for sale is reported on the
Gross profit is calculated by taking the net (1. ?) (sales/costs) of a product and (2. ?) (adding/subtracting) the cost of the goods sold.
A manufacturer's inventory consists of raw materials, work in process, and finished goods
Show your understanding of what merchandise is by completing the following sentence. Merchandise consists of (1. ?) that a company acquires to resell to (2. ?).