ACC

On October 25, Yacht Doc received $200,000 for a yacht valued at $180,000 and a 4-month service contract. During November, the yacht was delivered and 1 month of the service contract was performed. The remaining services are to be performed evenly over the next 3 months. What is the entry Yacht Doc should record on October 25? Debit Deferred Revenue; Credit Revenue Debit Cash; Credit Revenue Debit Deferred Revenue; Credit Cash Debit Cash; Credit Deferred Revenue

Debit Cash; Credit Deferred Revenue

Gross profit percentage is calculated as ______. Net sales minus Cost of Goods Sold, then divide by Net sales, and multiply by 100 Net sales minus Cost of Goods Sold, then multiply by 100 Net sales minus Cost of Goods Sold, then divide by Cost of Goods Sold, and multiply by 100

Net sales minus Cost of Goods Sold, then divide by Net sales, and multiply by 100

When a seller fulfills its performance obligation, it credits ______. Revenue Deferred Revenue Accounts Receivable Accounts Payable

Revenue

True or false: When a company sells different types of products, the income statement will report the Cost of Goods Sold for all of the products in one line item.

True

The journal entry to record taking a discount when paying for goods previously purchased on account and recorded using the gross method includes a ______. (Check all that apply.) credit to a liability account credit to two asset accounts debit to a liability account debit to an asset account

credit to two asset accounts debit to a liability account

Net Sales on an income statement equals Sales Revenue ______. minus Cost of Goods Sold plus Sales Returns, Allowances, and Discounts plus Sales Returns and Allowance less Sales Discounts minus Sales Returns, Allowances and Discounts

minus Sales Returns, Allowances and Discounts

Cost of Goods Sold on the income statement reports the ______. cost times the quantity of goods sold during the period cost of merchandise available to sell at the end of the period amount of cash paid during the period cost of merchandise purchased during the period

cost times the quantity of goods sold during the period

Inventory account consists of all ______. purchases less ending inventory purchases less sales discounts costs needed to get the inventory ready for sale costs paid to the supplier less freight-in

costs needed to get the inventory ready for sale

When using the gross method, the journal entry to record taking a discount when paying for goods previously purchased on account includes a ______. (Check all that apply.) n. credit to Accounts Payable for the discount amount debit to Accounts Payable for the original cost debit to Inventory for the discount amount credit to Inventory for the discount amount credit to Cash for the amount paid

debit to Accounts Payable for the original cost credit to Inventory for the discount amount credit to Cash for the amount paid

Using the gross method, the journal entry to record taking a discount when paying for goods previously purchased on account includes a(n) ______. decrease in assets and liabilities decrease in assets and stockholders' equity increase in assets and stockholders' equity decrease in liabilities and an increase in stockholders' equity

decrease in assets and liabilities

Sales Returns and Allowances are reported on the ______. balance sheet as a contra-account balance sheet as a reduction to Gross Profit income statement as a reduction to Cost of Goods Sold income statement

income statement

The journal entry to record the payment within the discount period for goods previously purchased on account causes _____. (Check all that apply.) total assets to increase total stockholders' equity to increase total liabilities to decrease total assets to decrease total liabilities to increase total stockholders' equity to decrease

total liabilities to decrease total assets to decrease

Walmart sells a bike that cost $100 to a customer for $250 cash. Using a perpetual inventory system, the entry to record the sale includes a debit to and credit to for $250. The entry to record the cost of the sale includes a debit to Cost of Goods Sold and a credit to for $100. (Enter only one word per blank.)

Blank 1: Cash Blank 2: Sales Blank 3: Revenue Blank 4: Inventory

ABC Corp. sells a product for $1,000 cash that cost $600. The journal entry for this transaction using a perpetual inventory system include a debit to ______. Cash of $1,000 and a credit to Sales Revenue of $1,000; a debit to Cost of Goods Sold of $600 and a credit to Inventory of $600 Inventory of $600 and a credit to Cash of $600; a debit to Cost of Goods Sold of $600 and a credit to Sales Revenue of $600 Cash of $1,000 and a credit to Sales Revenue of $1,000 Cash of $1,000 and a credit to Deferred Revenue of $1,000; a debit to Cost of Goods Sold of $600 and a credit to Accounts Payable of $600

Cash of $1,000 and a credit to Sales Revenue of $1,000; a debit to Cost of Goods Sold of $600 and a credit to Inventory of $600

What does FOB shipping point mean? Goods are owned by the buyer when they leave the seller's place of business. Goods are owned by the buyer as soon as the sales contract is signed. Goods are owned by the buyer as soon as they arrive at the buyer's place of business.

Goods are owned by the buyer when they leave the seller's place of business.

Inventory consists of the purchase price ______. plus freight-in less freight-out plus freight-out less freight-in

plus freight-in

True or false: Gross Profit is a stockholders' equity account and is credited when goods are delivered to customers.

False