Ch 5 Quiz

what is the cost of goods sold

$31,330

Freight In

The transportation cost to ship goods into the purchaser's warehouse; therefore, it is freight on purchased goods.

perpetual inventory syste purchases

are debited to the inventory account

FOB shipping point freight cost responsibility

buyer

inventory is classified on the balance sheet as

current asset

On March 25, Osgood Company sold merchandise on account, $10,000, terms n/30. The applicable sales tax percentage is 7.5%. Record the transaction.

debit AR 10,750; credit sales 10,000 and credit sales tax payable 750

Journalize the closing entry assuming a perpetual inventory system.

debit retained earnings 502,501; credit cost of goods sold 502,501

Freight-in is the amount paid by the company to deliver merchandise sold to a customer.

false

When merchandise is sold for $600 plus 6% sales tax, the Sales account should be credited for $636.

false

under the perpetual inventory system, all purchases of merchandise are debited to the account

inventory