141. Use the following information to answer questions 65-70.
1.
|
$7,000 of merchandise inventory was ordered on September 2, 2009
|
2.
|
$3,000 of this merchandise was received on September 5, 2009
|
3.
|
On September 6, 2009, an invoice dated September 4, 2009, with terms of 3/10, net 30 for $3,250 which included a $250 prepaid freight cost, was received.
|
4.
|
On September 10, 2009, $800 of the merchandise was returned to the seller.
|
|
|
Based on the above information, what would be recorded as the cash payment if the invoice is paid within the discount period?
A. $2,200
B. $2,134
C. $2,450
D. $2,384
142. Use the following information to answer questions 65-70.
1.
|
$7,000 of merchandise inventory was ordered on September 2, 2009
|
2.
|
$3,000 of this merchandise was received on September 5, 2009
|
3.
|
On September 6, 2009, an invoice dated September 4, 2009, with terms of 3/10, net 30 for $3,250 which included a $250 prepaid freight cost, was received.
|
4.
|
On September 10, 2009, $800 of the merchandise was returned to the seller.
|
|
|
Based on the above information, what would be recorded as net purchases amount after all of the transactions have been recorded?
A. $2,200
B. $2,134
C. $2,450
D. $2,384
143. Use the following information to answer questions 65-70.
1.
|
$7,000 of merchandise inventory was ordered on September 2, 2009
|
2.
|
$3,000 of this merchandise was received on September 5, 2009
|
3.
|
On September 6, 2009, an invoice dated September 4, 2009, with terms of 3/10, net 30 for $3,250 which included a $250 prepaid freight cost, was received.
|
4.
|
On September 10, 2009, $800 of the merchandise was returned to the seller.
|
|
|
Based on the above information, what would the journal entry for September 10, 2009 include?
A. Debit to Merchandise Inventory $800
B. Debit to Purchases Returns $800
C. Credit to Merchandise Inventory $800
D. Credit to Accounts Payable $800
144. Use the following information to answer questions 65-70.
1.
|
$7,000 of merchandise inventory was ordered on September 2, 2009
|
2.
|
$3,000 of this merchandise was received on September 5, 2009
|
3.
|
On September 6, 2009, an invoice dated September 4, 2009, with terms of 3/10, net 30 for $3,250 which included a $250 prepaid freight cost, was received.
|
4.
|
On September 10, 2009, $800 of the merchandise was returned to the seller.
|
|
|
Based on the above information, by what date does the invoice need to be paid in order to take the advantage of the discount?
A. September 15, 2009
B. September 16, 2009
C. September 10, 2009
D. September 14, 2009
145. Use the following information to answer questions 65-70.
1.
|
$7,000 of merchandise inventory was ordered on September 2, 2009
|
2.
|
$3,000 of this merchandise was received on September 5, 2009
|
3.
|
On September 6, 2009, an invoice dated September 4, 2009, with terms of 3/10, net 30 for $3,250 which included a $250 prepaid freight cost, was received.
|
4.
|
On September 10, 2009, $800 of the merchandise was returned to the seller.
|
|
|
Based on the above information, what would be the cash payment if the company decides to pay the invoice on September 30, 2009?
A. $2,450
B. $2,384
C. $3,250
D. $3,000
146. Who pays the freight costs when the terms are FOB shipping point?
A. the ultimate customer
B. the buyer
C. the seller
D. either the seller or the buyer
147. Who pays the freight cost when the terms are FOB destination?
A. the seller
B. the buyer
C. the customer
D. either the buyer or the seller
148. A retailer purchases merchandise with a catalog list price of $15,000. The retailer receives a 15% trade discount and credit terms of 2/10, n/30. How much cash will be needed to pay this invoice within the discount period?
A. $15,000
B. $14,700
C. $12,750
D. $12,495
149. Which of the following accounts, will only be found in the chart of accounts of a merchandising company?
A. Sales
B. Accounts Receivable
C. Merchandise Inventory
D. Accounts Payable
150. Which of the following items would affect the cost of merchandise inventory acquired during the period?
A. quantity discounts
B. cash discounts
C. freight-in
D. all of the above