Cost of goods sold:

Cushman Company had $800,000 in sales, sales discounts of $12,000, sales returns and allowances of $18,000, cost of goods sold of $380,000, and $275,000 in operating expenses. Net income equals:

115,000

A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 28, it paid the full amount due. The amount of the cash paid on July 28 equals:

1600

A company purchased $2,000 of merchandise on August 15 with terms 1/10, n/30. On August 17, it returned $200 worth of merchandise. On August 18, it paid the amount due. The amount of the cash paid on August 18 equals:

1782

The credit terms 2/10, n/30 are interpreted as:

2% cash discount if the amount is paid within 10 days, or the full balance due in 30 days.

A company has net sales of $375,000 and its gross profit is $157,500. Its cost of goods sold is:

217,500

Cushman Company had $800,000 in sales, sales discounts of $12,000, sales returns and allowances of $18,000, cost of goods sold of $380,000, and $275,000 in operating expenses. Gross profit equals:

390000

A company purchased $4,000 worth of merchandise. Transportation costs for the buyer were an additional $350. The company returned $275 worth of merchandise and then paid the invoice within the 2% cash discount period. The total cost of this merchandise is:

4000.50

Which of the following is not included on a purchase invoice?

Arrival date of items ordered.

Which of the following is not included in the cost of merchandise inventory?

Freight costs paid by the seller.

Multiple-step income statements:

Have three main parts: gross profit, income from operations, and net income.

Which of the following statements regarding inventory shrinkage is false?

Inventory shrinkage is recognized by crediting an operating expense.

Cost of goods sold:

Is the term used for the expense of buying and preparing merchandise for sale.

Beginning inventory plus net purchases is:

Merchandise available for sale.

Which of the following statements regarding merchandise inventory is false?

Merchandise inventory appears on the balance sheet of a service company.

A debit to Sales Returns and Allowances and a credit to Accounts Receivable:

Recognizes that a customer returned merchandise and/or received an allowance.

Which of the following accounts would be closed at the end of the accounting period with a debit?

Sales

An income statement that includes cost of goods sold as an expense and shows only one subtotal for total expenses is a:

Single-step income statement.

The current period's ending inventory is:

The next period's beginning inventory.