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.