35 a company purchased inventory for 75 000 from a vendor on account fob shipping po 4307062

35 a company purchased inventory for 75 000 from a vendor on account fob shipping po 4307062

35) A company purchased inventory for $75,000 from a vendor on account, FOB shipping point, with terms of 3/10, n/30. The company paid the shipper $1,500 cash for freight in. The company paid the vendor 9 days after the sale. If there was no beginning inventory, the cost of inventory would be: (Assume a perpetual inventory system)

A) $74,250.

B) $76,500.

C) $71,295.

D) $73,500.

36) A company purchased inventory for $2,000 from a vendor on account, FOB shipping point, with terms of 2/10, n/30. The company paid the shipper $100 cash for freight in. The company then returned damaged goods worth $200. The invoice has been paid 8 days after the sale. Assuming that there was no beginning inventory balance, the cost of inventory would be: (Assume a perpetual inventory system)

A) $1,764.

B) $1,864.

C) $2,100.

D) $1,900.

Net Cost of Inventory Purchased$1,864

37) Under the perpetual inventory system, discounts taken on an invoice by the buyer would be:

A) debited to Merchandise Inventory.

B) credited to Merchandise Inventory.

C) debited to Cost of goods sold.

D) credited to Cost of goods sold.

38) A company ships goods to a customer, and pays transportation costs. To the seller, the transportation costs so paid are known as:

A) freight out.

B) freight in.

C) sales commission.

D) brokerage.

39) A company has purchased inventory and received an invoice that requires the buyer to pay the transportation costs for delivering the merchandise. The terms in this case are:

A) FOB destination.

B) FOB shipping point.

C) FOB, 2/10, n/30.

D) FOB in transit.

40) The purpose of reviewing FOB terms on the invoice is to:

A) identify the person liable to pay freight.

B) calculate the amount of freight payable.

C) to locate the transporter.

D) to decide and conform the transporter.

41) WAXS-D, merchandisers of musical instruments, has provided the following details:

Mar.5

Inventory purchased

$800,000

Mar.8

Freight In

40,000

Mar.13

Purchase returns

60,000

Mar.14

Allowances by vendor

15,000

Mar.20

Payment made to vendor for purchases on March 5

?

Credit terms are: 3/20, n/45, FOB shipping. Calculate the net cost of inventory purchased assuming that there are no other inventory related transactions during the month.

A) $785,000

B) $740,000

C) $725,000

D) $743,250

42) A company purchased inventory for $2,200 on account, and recorded the following journal entry:

 

Merchandise Inventory

2,200

               Accounts payable

2,200

The vendor's invoice showed terms of 3/10, n/30. Give the journal entry for the payment of the invoice seventeen days after the invoice date.

43) A company purchased inventory for $100,000 on account, and recorded it as follows:

Merchandise Inventory

100,000

           Accounts Payable

100,000

The vendor's invoice showed terms of 3/10, net 30. Give the journal entry for the payment of the invoice seven days after the invoice date, assuming that the vendor uses the perpetual inventory system.

44) A merchandiser, following the perpetual inventory system, has the following transactions during August, 2015:

Date     Transaction                           Amount ($)

Aug. 5Purchases on account300,000

Aug. 9Paid for transportation of goods purchased25,000

Aug.10Purchase returned20,000

Aug.15Paid for goods purchased on August 5?

Credit terms of invoice are 2/15, n/45. Give journal entries for the above transactions.

Looking for a similar assignment? Get help from our qualified experts!

Order Now

Related Posts