106. Sales less sales discounts less sales returns and allowances equals:
A. Net purchases.
B. Cost of goods sold.
C. Net sales.
D. Gross profit.
E. Net income.
107. Garza Company had sales of $135,000, sales discounts of $2,000, and sales returns of $3,200. Garza Company's net sales equals:
A. $5,200.
B. $129,800.
C. $133,000.
D. $135,000.
E. $140,200.
108. On May 1, Shilling Company, Inc. sold merchandise in the amount of $5,800 to Anders, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Shilling uses the perpetual inventory system. The journal entry or entries that Shilling will make on May 1 is:
A.
|
Sales............................
|
5,800
|
|
|
Accounts receivable..............
|
|
5,800
|
B.
|
Sales............................
|
5,800
|
|
|
Accounts receivable..............
|
|
5,800
|
|
Cost of goods sold...................
|
4,000
|
|
|
Merchandise Inventory............
|
|
4,000
|
C.
|
Accounts receivable..................
|
5,800
|
|
|
Sales........................
|
|
5,800
|
D.
|
Accounts receivable..................
|
5,800
|
|
|
Sales........................
|
|
5,800
|
|
Cost of goods sold...................
|
4,000
|
|
|
Merchandise inventory............
|
|
4,000
|
E.
|
Accounts receivable..................
|
4,000
|
|
|
Sales........................
|
|
4,000
|
109. On May 1, Anders Company, Inc. purchased merchandise in the amount of $5,800 from Shilling, with credit terms of 2/10, n/30. Anders uses the perpetual inventory system. The journal entry or entries that Anders will make on May 1 is:
A.
|
Sales............................
|
5,800
|
|
|
Accounts receivable..............
|
|
5,800
|
B.
|
Merchandise Inventory...............
|
5,800
|
|
|
Accounts payable................
|
|
5,800
|
C.
|
Accounts payable...................
|
5,800
|
|
|
Sales........................
|
|
5,800
|
D.
|
Merchandise inventory...............
|
5,800
|
|
|
Cash.........................
|
|
5,800
|
E.
|
Purchases........................
|
5,800
|
|
|
Accounts Payable................
|
|
5,800
|
110. On February 3, Smart Company, Inc. sold merchandise in the amount of $5,800 to Truman Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Smart uses the perpetual inventory system. Truman pays the invoice on February 8, and takes the appropriate discount. The journal entry that Smart makes on February 8 is:
A.
|
Cash............................
|
5,800
|
|
|
Accounts receivable..............
|
|
5,800
|
B.
|
Cash............................
|
4,000
|
|
|
Accounts receivable..............
|
|
4,000
|
C.
|
Cash
|
3,920
|
|
|
Sales discounts.....................
|
80
|
|
|
Accounts receivable..............
|
|
4,000
|
D.
|
Cash
|
5,684
|
|
|
Accounts receivable..............
|
|
5,684
|
E.
|
Cash
|
5,684
|
|
|
Sales discounts.....................
|
116
|
|
|
Accounts receivable..............
|
|
5,800
|
111. On July 1, Ferguson Company, Inc. sold merchandise in the amount of $5,800 to Tracey Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Ferguson uses the perpetual inventory system. On July 5, Tracey returns some of the merchandise. The selling price of the merchandise is $500 and the cost of the merchandise returned is $350. The entry or entries that Ferguson must make on July5 is:
A.
|
Sales returns and allowances............
|
500
|
|
|
Accounts receivable..............
|
|
500
|
|
Merchandise inventory................
|
350
|
|
|
Cost of goods sold...............
|
|
350
|
B.
|
Sales returns and allowances............
|
500
|
|
|
Accounts receivable..............
|
|
500
|
C.
|
Accounts receivable..................
|
500
|
|
|
Sales returns and allowances........
|
|
500
|
D.
|
Accounts receivable..................
|
500
|
|
|
Sales returns and allowances........
|
|
500
|
|
Cost of goods sold...................
|
350
|
|
|
Merchandise inventory............
|
|
350
|
E.
|
Sales returns and allowances............
|
350
|
|
|
Accounts receivable..............
|
|
350
|
112. Juniper Company, Inc.uses a inventory system. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 16, it paid the full amount due. The amount of the cash paid on August 16 equals:
A. $8,167.50.
B. $9,652.50.
C. $9,750.00.
D. $8,250.00.
E. $8,152.50.
113. Juniper Company, Inc.uses a inventory system. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. On August11, it returned $1,500 worth of merchandise. On August 26, it paid the full amount due. The amount of the cash paid on August 26 equals:
A. $8,167.50
B. $9,652.50.
C. $9,750.00.
D. $8,250.00.
E. $8,152.50.
114. Juniper Company, Inc. uses a inventory system. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 16, it paid the full amount due. The correct journal entry to record the purchase on August 7 is:
A. Debit Merchandise Inventory $9,750; credit Cash $9,750.
B. Debit Accounts Payable $9,750; credit Merchandise Inventory $9,750.
C. Debit Merchandise Inventory $9,750; credit Sales Returns $1,500; credit Cash $8,250.
D. Debit Merchandise Inventory $9,750; credit Accounts Payable $9,750.
E. Debit Accounts Payable $8,250; debit Purchase Returns $1,500; credit Merchandise Inventory $9,750.
115. Juniper Company, Inc. uses a inventory system. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 26, it paid the full amount due. The correct journal entry to record the merchandise return on August 11 is:
A. Debit Accounts Payable $1,500; credit Cash $1,500.
B. Debit Accounts Payable $1,500; credit Merchandise Inventory $1,500.
C. Debit Merchandise Inventory $1,500; credit Sales Returns $1,500.
D. Debit Merchandise Inventory $1,500; credit Cash $1,500.
E. Debit Accounts Payable $1,500; credit Purchase Returns $1,500.