62.Refer to the information above. If Washington uses a perpetual inventory system, the journal entry to record the purchase on January 18th
would include which of the following?
A. A debit to the Purchases account for $7,000.
B. A debit to the Cost of Goods Sold for $7,000.
C. A credit to Inventory for $7,000.
D. A debit to Inventory for $7,000.
63.Refer to the information above. The gross profit on the Flat TVs as of February 12th
is:
A. $11,200.
B. $2,700.
C. $4,100.
D. $15,300.
64.Refer to the information above. If Washington uses a perpetual inventory system, the journal entry to record the sale on February 12th
would include all of the following
except:
A. A debit to the Cost of Goods Sold for $12,600.
B. A credit to Sales Revenue for $15,300.
C. A credit to Purchases for $15,300.
D. A credit to Inventory for $15,300.
65.Refer to the information above. Washington maintains a subsidiary ledger account for each type of TV carried in the store. An examination of the account for the Flat TV model at the end of February would show:
A. 4 units on hand with a total value of $1,400.
B. 4 units on hand with a total value of $5,600.
C. 13 units on hand with a total value of $18,200.
D. The amount that Washington owes to Bass.
World of Sound is a small retail business that specializes in the sale of top-of-the-line sound systems. This year, the store has begun to carry the Surround Sound manufactured by Carp Co. Thus far, World of Sound has recorded the following transactions involving the Surround Sound
May 5 Purchased 18 units at a unit cost of $2,400
May 18 Purchased 15 additional units at $2,550 each
June 12 Sold 19 units to the Davies Theater
66.Refer to the information above. If World of Sound uses a perpetual inventory system, the journal entry to record the purchase on May 18th
would include which of the following?
A. A debit to the Purchases account for $38,250.
B. A debit to the Cost of Goods Sold for $38,250.
C. A credit to Inventory for $38,250.
D. A debit to Inventory for $38,250.
67.Refer to the information above. If World of Sound uses a perpetual inventory system, the journal entry to record the sale on February 12th
would include which of the following (World of Sound uses FIFO meaning that the first goods purchased are the first to be sold)?
A. A debit to the Cost of Goods Sold for $45,750.
B. A credit to the Cost of Goods Sold for $45,750.
C. A credit to Purchases for $45,750.
D. A debit to Inventory for $45,750.
68.Inventory shrinkage is not caused by:
A. Shoplifting.
B. Breakage.
C. Price reductions by competitors.
D. Spoilage.
69.In a periodic inventory system, the formula used in computing the cost of goods sold may be summarized as follows:
A. Beginning inventory + purchases - ending inventory.
B. Beginning inventory + purchases - net sales.
C. Ending inventory + purchases - net sales.
D. Balance in the Cost of Goods Sold account, less the balance in the Inventory Shrinkage account.
70.In a periodic inventory system, which of the following accounts may be closed by debiting Cost of Goods Sold?
A. Sales, Inventory (beginning), and Gross Profit.
B. Inventory (beginning) and Purchases.
C. Purchases and Inventory (ending).
D. Sales, Inventory (beginning), and Cost of Goods Available for Sale.
71.In a periodic inventory system, the cost of goods sold is:
A. Recorded as sales transactions occur.
B. Determined by a computation which is performed at year-end, after the taking of a complete physical inventory.
C. Equal to the beginning inventory, plus purchases made during the period, less sales revenue for the period.
D. Determined by subtracting the balance in the Gross Profit account from the amount of net sales.