11.The cost of merchandise inventory is limited to the purchase price less any purchase discounts.
a.True
b.False
12.Under the perpetual inventory system, when a sale is made, both the sale and cost of merchandise sold arerecorded.
a.True
b.False
13.If payment is due by the end of the month in which the sale is made, the invoice terms are expressed as n/30.
a.True
b.False
14.When merchandise that was sold is returned, a credit to sales returns and allowances is made.
a.True
b.False
15.In a perpetual inventory system, when merchandise is returned to the supplier, Cost of Merchandise Sold is debitedas part of the transaction.
a.True
b.False
16.Customer Refunds Payable is an account used to record merchandise returns from customers.
a.True
b.False
17.Estimated Returns Inventory is an account used when adjusting for expected merchandise sales in the next period.
a.True
b.False
18.Sales to customers who use bank credit cards, such as MasterCard and VISA, are generally treated as credit sales.
a.True
b.False
19.Most retailers record all credit card sales as credit sales.
a.True
b.False
20.The fees associated with credit card sales are periodically recorded as expenses.
a.True
b.False