Accounting - Test 2
Merchandise Inventory $117000 Accounts Payable $117000
8/11: Paid supplier the amount owed from the August 1 purchase. (Original amount $117,000, credit terms of 3/10, n/30)
Accounts Payable $42,500 Cash $42,500
9/29: Paid supplier the amount owed on the September 15 purchase. (invoice price of $42,500 and credit terms of 5/5, n/15.)
$23958
What is the amount to be paid for each separate invoice? $24,200 (1/15, EOM)
$7644
What is the amount to be paid for each separate invoice? $7800 (2/10, n/60)
Goods Available For Sale - Ending Inventory = Cost Of Goods Sold
What is the equation for Cost of Goods Sold?
Goods Available For Sale = Beginning Inventory + Net Puchases
What is the equation for Goods Available For Sale?
Net Sales - Cost of Goods Sold = Gross Profit
What is the equation for Gross Profit?
Revenues - Expenses = Net Income
What is the equation for Net Income?
Accounts Payable xx Cash xx Merchandise Inventory xx
What is the journal entry for the following: 11/15: Paid the amount due from the November 5 purchase ($3700) minus the return of $300 on November 7.
Merchandise Inventory xx Accounts Payable xx
What is the journal entry for the following: 11/5: Purchased 400 units of product at a cost of $10 per unit. Terms of the sale are 3/10, n/60; the invoice is dated November 5.
Accounts Payable xx Merchandise Inventory xx
What is the journal entry for the following: 11/7: Returned 30 ($10 each) defective units from the November 5 (total is $4000) and received full credit.
Accounts Payable $117,000 Merchandise Inventory $3510 Cash $113,490
What is the journal entry for the following: Paid supplier the amount owed from the August 1 purchase. (original amount $117,000, credit terms of 3/10, n/30)
COGS $3360 Merchandise Inventory $3360
What is the journal entry for: The customer in the April 1 sale returned $640 of merchandise for full credit. The merchandise, which had cost $384, is returned to inventory.
A/R $5600 Sales $5600
What is the journal entry for: 4/1: Sold merchandise for $5,600, with credit terms n/30; invoice dated April 1. The cost of the merchandise is $3,360.
Merchandise Inventory $42,500 Accounts Payable . $42500
What is the journal entry for: 9/15: Purchased merchandise with an invoice price of $42,500 and credit terms of 5/5, n/15.
