111. In credit terms of 3/15, n/45, the "3" represents the
A. number of days in the discount period
B. full amount of the invoice
C. number of days when the entire amount is due
D. percent of the cash discount
112. Merchandise with a sales price of $800 is sold on account with term 2/10, n/30. The journal entry to record the sale would include a
A. debit to Cash for $800
B. Debit to Sales Discounts for $16
C. Credit to Sales for $800
D. Debit to Accounts Receivable for $784
113. Merchandise subject to terms 1/10, n/30, FOB shipping point, is sold on account to a customer for $25,000. The seller paid freight costs of $2,000 and issued a credit memo for $10,000 prior to payment. What is the amount of the cash discount allowable?
A. $170
B. $150
C. $130
D. $250
114. Which of the following accounts has a normal credit balance?
A. Sales Returns and Allowances
B. Sales
C. Merchandise Inventory
D. Delivery Expense
115. The entry to record the return of merchandise from a customer would include a
A. debit to Sales
B. credit to Sales
C. debit to Sales Returns and Allowances
D. credit to Sales returns and Allowances
116. Sales to customers who use bank credit cards such as MasterCard and Visa are usually recorded by a
A. debit to Bank Credit Card Sales, debit to Credit Card Expense, and a credit to Sales
B. debit to Cash and a credit to Sales
C. debit to Cash, credit to Credit Card Expense, and a credit to Sales
D. debit to Sales, debit to Credit Card Expense, and a credit to Cash
117. Sales to customers who use bank credit cards, such as MasterCard and Visa, are generally treated as
A. sales on account
B. sales returns
C. cash sales
D. sales when the credit card company remits the cash
118. When a buyer returns merchandise purchased for cash, the buyer may record the transaction using the following entry
A. debit Merchandise Inventory; credit Cash
B. debit Cash; credit Merchandise Inventory
C. debit Cash; credit Sales Returns and Allowances
D. debit Sales Returns and Allowances; credit Cash
119. When merchandise is returned under the perpetual inventory system, the buyer would credit
A. Merchandise Inventory
B. Purchases Returns and Allowances
C. Accounts Payable
D. Accounts Receivable
120. When purchases of merchandise are made for cash, the transaction may be recorded with the following entry
A. debit Cash; credit Merchandise Inventory
B. debit Merchandise Inventory; credit Cash
C. debit Merchandise Inventory; credit Cash Discounts
D. debit Merchandise Inventory; credit Purchases