121. Using a perpetual inventory system, the entry to record the purchase of $30,000 of merchandise on account would include a
A. debit to Accounts Payable
B. debit to Merchandise Inventory
C. credit to Merchandise Inventory
D. credit to Sales
122. Using a perpetual inventory system, the entry to record the return of merchandise purchased on account includes a
A. debit to Cost of Merchandise Sold
B. credit to Accounts Payable
C. credit to Merchandise Inventory
D. credit to Sales
123. In recording the cost of merchandise sold for cash, based on data available from perpetual inventory records, the journal entry is
A. debit Cost of Merchandise Sold; credit Sales
B. debit Cost of Merchandise Sold; credit Merchandise Inventory
C. debit Merchandise Inventory; credit Cost of Merchandise Sold
D. debit Accounts Receivable; credit Merchandise Inventory
124. The amount of the total cash paid to the seller for merchandise purchased for consumption would normally include
A. only the list price
B. only the sales tax
C. the list price plus the sales tax
D. the list price less the sales tax
125. A retailer purchases merchandise with a catalog list price of $15,000. The retailer receives a 30% trade discount and credit terms of 2/10, n/30. What amount should the retailer debit to the Merchandise Inventory account?
A. $4,500
B. $10,500
C. $10,290
D. $14,700
126. A sales invoice included the following information: merchandise price, $5,000; freight, $900; terms 1/10, n/eom, FOB shipping point. Assuming that a credit for merchandise returned of $700 is granted prior to payment and that the invoice is paid within the discount period, what is the amount of cash that should be received by the seller?
A. $5,157
B. $4,300
C. $4,257
D. $4,950
127. Which of the following accounts usually has a debit balance?
A. Purchase Discounts
B. Sales Tax Payable
C. Allowance for Doubtful Accounts
D. Freight In
128. Merchandise is sold for cash. The selling price of the merchandise is $3,000 and the sale is subject to a 7% state sales tax. The journal entry to record the sale would include
A. a debit to Cash for $3,000
B. a credit to Sales for $3,210
C. a credit to Sales Tax Payable for $210
D. none of these
129. If the buyer is to pay the freight costs of delivering merchandise, delivery terms are stated as
A. FOB shipping point
B. FOB destination
C. FOB n/30
D. FOB buyer
130. If the seller is to pay the freight costs of delivering merchandise, the delivery terms are stated as
A. FOB shipping point
B. FOB destination
C. FOB n/30
D. FOB seller