17 up to date merchandisers has the following transactions for the month of july sal 4307054

17 up to date merchandisers has the following transactions for the month of july sal 4307054

17) Up-to-date Merchandisers has the following transactions for the month of July.

Sales revenue

$460,000

Cost of goods sold

300,000

Operating expenses

85,000

Sales discounts

20,000

Sales returns and allowances

15,000

Interest revenue

5,000

Calculate Gross Profit.

A) $90,000

B) $125,000

C) $140,000

D) $160,000

18) On November 1, 2015, Wrenns Martch sold merchandise with a cost of $5,000 for $10,000, FOB destination, with payment terms of 3/10, n/40. Wrenns paid transportation costs of $100. Of these, merchandise sold for $3,000(with a cost of $1,500) was returned on November 6. The company received the payment for the balance amount on November 10, 2015. Calculate the Net sales revenue.

A) $6,790

B) $7,000

C) $4790

D) $7790

19) On November 1, 2015, Wrenns Martch sold merchandise for $10,000, FOB destination, with payment terms of 3/10, n/40. Sales returns on this sale amounted to $3,000. Wrenns received payment for the balance on November 10, 2015. The cost of goods sold was $3,600. Calculate the amount of gross profit from the transaction.

A) $1,800

B) $3,190

C) $1,320

D) $6,790

20) Michelin Jewelers uses the perpetual inventory system. On April 2, Michelin sold merchandise with a cost of $5,500 for $9,000 to a customer on account with terms of 3/15, n/30. Which of the following journal entries correctly records the sales revenue?

A)

Sales Revenue

9,000

               Accounts Receivable

9,000

B)

Sales Revenue

9,000

               Cost of Goods Sold

9,000

C)

Cash

9,000

               Sales Revenue

9,000

D)

Accounts Receivable

9,000

               Sales Revenue

9,000

21) Michelin Jewelers uses the perpetual inventory system. On April 2, Michelin sold merchandise with a cost of $5,500 for $9,000 to a customer on account with terms of 3/15, n/30. The journal entry to record the cost of goods sold would be:

A)

Cost of Goods Sold

5,500

               Accounts Receivable

5,500

B)

Sales Revenue

5,500

               Cost of Goods Sold

5,500

C)

Cost of Goods Sold

5,500

               Merchandise Inventory

5,500

D)

Merchandise Inventory

5,500

               Cost of Goods Sold

5,500

22) A merchandiser sold merchandise inventory on account. The journal entry to record sales allowances in the books of a merchandiser using the perpetual inventory system would be:

A)

Sales Returns and Allowances

           Accounts Receivable

B)

Merchandise Inventory

           Sales Revenue

C)

Cost of Goods Sold

           Sales Returns and Allowances

D)

Sales Returns and Allowances

           Cash

23) Under the perpetual inventory system, the journal entry to record the freight paid by the seller on goods sold is:

A)

Cash

               Sales Discount

               Accounts Receivable

B)

Delivery Expenses

               Cash

C)

Cash

               Accounts Receivable

D)

Merchandise Inventory

               Cash

24) Michelin Jewelers uses the perpetual inventory system. On April 2, Michelin sold merchandise with a cost of $5,500 for $9,000 to a customer on account with terms of 3/15, n/30. On April 4, the customer reported damaged goods and Michelin granted a $1,000 sales allowance. On April 10, Michelin received payment from the customer. Calculate the amount of net sales revenue.

A) $8,760

B) $9,000

C) $8,000

D) $7,760

25) Michelin Jewelers uses the perpetual inventory system. On April 2, Michelin sold merchandise for $50,000 to a customer on account with terms of 2/15, n/30. The allowance and returns on this sale amounted to $2,000 and $8,000, respectively. The cost of goods sold was $22,000. On April 20, Michelin received payment from the customer. Calculate the amount of gross profit.

A) $40,000

B) $22,000

C) $18,000

D) $15,000

26) Under the perpetual inventory system, the journal entries to record sales returns(the original sale was on account) would be:

A)

Accounts Payable

XX

               Merchandise Inventory

XX

Merchandise Inventory

XX

               Cost of Goods Sold

XX

B)

Cost of Goods Sold

XX

               Merchandise Inventory

XX

Merchandise Inventory

XX

               Accounts Payable

XX

C)

Accounts Receivable

XX

               Sales

XX

Sales

XX

               Cost of Goods Sold

XX

D)

Sales Returns and Allowances

XX

               Accounts Receivable

XX

Merchandise Inventory

XX

               Cost of Goods Sold

XX

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