ACC 210 Ch. 6

To calculate the amount in the inventory account, which of the following occurs?

-Freight-in is added to inventory -Purchase discounts are subtracted from inventory -Purchase returns are subtracted from inventory

The purchase discount term, 2/10 means the purchaser:

Has 10 days from the purchase date in which to pay and receive a 2% discount

Debit accounts receivable, credit sales revenue

Sale of inventory on account

Using a perpetual inventory system, the entry to record the return of goods you previously purchased on account includes a:

-Credit to inventory -Debit to Accounts payable

Using a perpetual inventory system, the entry to record the return of goods you previously purchased on account includes a ______.

-Debit to accounts payable -Credit to inventory

Debit Inventory, Credit accounts payable

Purchase of inventory on account

To calculate the amount in the inventory account these occur:

-Purchase returns are subtracted from inventory -Purchase discounts are subtracted from inventory -Freight-in is added to inventory

To calculate the amount in the inventory account, which of the following occurs:

-Purchase returns are subtracted from inventory -Purchase discounts are subtracted from inventory -Freight-in is added to inventory

Under a perpetual inventory system, the entry to record the return of goods previously purchased on account was recorded with a debit to Accounts payable and a credit to inventory. This entry is:

Correct

Maier Company purchases inventory from Kunze corp. and debits inventory and credits accounts payable to record the transaction. Which of the following journal entries would Kunze make to record the sale?

Debit accounts receivable, credit sales revenue.

Maier company purchases inventory from Kunze corp. and debits inventory and credits accounts payable to record the transaction. Which of the following journal entries would Kunze make to record the sale?

Debit accounts receivable, credit sales revenue.