17) Referring to the following table, what is Net sales revenue?
Sales revenue
|
$460,000
|
Cost of goods sold
|
300,000
|
Operating expenses
|
85,000
|
Sales discounts
|
20,000
|
Sales returns and allowances
|
15,000
|
Interest revenue
|
5,000
|
A) $400,000
B) $415,000
C) $425,000
D) $455,000
18) Referring to the following table, what is Gross profit?
Sales revenue
|
$460,000
|
Cost of goods sold
|
300,000
|
Operating expenses
|
85,000
|
Sales discounts
|
20,000
|
Sales returns and allowances
|
15,000
|
Interest revenue
|
5,000
|
A) $90,000
B) $125,000
C) $140,000
D) $160,000
19) On November 1, 2012, Everett Janitorial Supply sold merchandise for $5,000, FOB destination, 2/10, n/30. The merchandise cost $3,200. Everett paid transportation costs of $100. On November 6, 2012, merchandise of $1,000 from the Nov. 1 sale was returned. The returned merchandise had cost $600. Everett received payment for the balance of the sale on November 10, 2012. If this were the only sales transaction of the period, what amount of Net sales revenue would be shown on the income statement?
A) $2,400
B) $1,800
C) $1,320
D) $3,920
20) On November 1, 2012, Everett Janitorial Supply sold merchandise for $5,000, FOB destination, 2/10, n/30. The merchandise cost $3,200. Everett paid transportation costs of $100. On November 6, 2012, merchandise of $1,000 from the Nov. 1 sale was returned. The returned merchandise had cost $600. Everett received payment for the balance of the sale on November 10, 2012. If this were the only sales transaction of the period, what amount of Gross profit would be shown on the income statement?
A) $2,400
B) $1,800
C) $1,320
D) $3,920
21) Michelin Jewelers completed the following transactions. Michelin Jewelers uses the perpetual inventory system. On April 2, Michelin sold $9,000 of merchandise to a customer on account with terms of 3/15, n/30. Michelin's cost of the merchandise sold was $5,500. Which of the following journal entries correctly records the Sales revenue?
A)
Sales revenue
|
9,000
|
|
Accounts receivable
|
|
9,000
|
B)
Sales revenue
|
9,000
|
|
Cost of goods sold
|
|
9,000
|
C)
Cash
|
9,000
|
|
Sales revenue
|
|
9,000
|
D)
Accounts receivable
|
9,000
|
|
Sales revenue
|
|
9,000
|
22) Michelin Jewelers completed the following transactions. Michelin Jewelers uses the perpetual inventory system. On April 2, Michelin sold $9,000 of merchandise to a customer on account with terms of 3/15, n/30. Michelin's cost of the merchandise sold was $5,500. Which of the following journal entries correctly records the Cost of goods sold?
A)
Cost of goods sold
|
5,500
|
|
Accounts receivable
|
|
5,500
|
B)
Sales revenue
|
5,500
|
|
Cost of goods sold
|
|
5,500
|
C)
Cost of goods sold
|
5,500
|
|
Inventory
|
|
5,500
|
D)
Inventory
|
5,500
|
|
Cost of goods sold
|
|
5,500
|
23) Michelin Jewelers completed the following transactions. Michelin Jewelers uses the perpetual inventory system. On April 2, Michelin sold $9,000 of merchandise to a customer on account with terms of 3/15, n/30. Michelin's cost of the merchandise sold was $5,500. On April 4, the customer reported damaged goods and Michelin granted a $1,000 sales allowance. Which of the following entries correctly records the sales allowance on Michelin's books?
A)
Sales returns and allowances
|
1,000
|
|
Accounts receivable
|
|
1,000
|
B)
Sales returns and allowances
|
1,000
|
|
Sales revenue
|
|
1,000
|
C)
Cost of goods sold
|
1,000
|
|
Sales returns and allowances
|
|
1,000
|
D)
Sales returns and allowances
|
1,000
|
|
Cash
|
|
1,000
|
24) Michelin Jewelers completed the following transactions. Michelin Jewelers uses the perpetual inventory system. On April 2, Michelin sold $9,000 of merchandise to a customer on account with terms of 3/15, n/30. Michelin's cost of the merchandise sold was $5,500. On April 4, the customer reported damaged goods and Michelin granted a $1,000 sales allowance. On April 10, Michelin received payment from the customer. Which of the following entries correctly records the cash receipt on Michelin's books?
A)
Cash
|
7,760
|
|
Sales discount
|
240
|
|
Accounts receivable
|
|
8,000
|
B)
Accounts receivable
|
8,000
|
|
Sales discount
|
|
240
|
Cash
|
|
7,760
|
C)
Cash
|
8,000
|
|
Accounts receivable
|
|
8,000
|
D)
Cash
|
7,760
|
|
Accounts receivable
|
|
7,760
|
25) Michelin Jewelers completed the following transactions. Michelin Jewelers uses the perpetual inventory system. On April 2, Michelin sold $9,000 of merchandise to a customer on account with terms of 3/15, n/30. Michelin's cost of the merchandise sold was $5,500. On April 4, the customer reported damaged goods and Michelin granted a $1,000 sales allowance. On April 10, Michelin received payment from the customer. If this were the only transaction for the period, what amount would be shown on the income statement for Net sales revenue?
A) $8,760
B) $9,000
C) $8,000
D) $7,760
26) Michelin Jewelers completed the following transactions. Michelin Jewelers uses the perpetual inventory system. On April 2, Michelin sold $9,000 of merchandise to a customer on account with terms of 3/15, n/30. Michelin's cost of the merchandise sold was $5,500. On April 4, the customer reported damaged goods and Michelin granted a $1,000 sales allowance. On April 10, Michelin received payment from the customer. If this were the only transaction for the period, what amount would be shown on the income statement for Gross profit?
A) $2,260
B) $3,500
C) $3,260
D) $3,230