81) Match the items below with the appropriate statements.
I = The expenditure should be included in the inventory account.
X = The expenditure should
NOT
be included in the inventory account.
______ 1. ABC, Inc. purchases merchandise and pays $400 of shipping insurance.
______ 2. ABC, Inc. returned $200 of merchandise.
______ 3. ABC, Inc. paid $2,500 to a supplier for merchandise it had purchased on credit two months earlier.
______ 4. ABC, Inc. purchases $2,000 of merchandise on account.
______ 5. ABC, Inc. pays $60 of import tariffs associated with a purchase of merchandise from an overseas supplier.
82) Match the descriptions below with the correct credit or shipping terms. Some terms may be used more than once and others may not be used at all.
a. 2/10, n/30
b. 1/15, n/45
c. n/60
d. 3/10, n/60
e. FOB destination
f. FOB shipping point
______ 1. credit terms that do not provide a discount for early payment
______ 2. credit terms that allow for a 1% discount for early payment
______ 3. shipping terms that would typically mean that the buyer has to pay the freight charges
______ 4. shipping terms that would typically mean that the seller has to pay the freight charges
______ 5. credit terms that provide for a maximum of one and a half months to satisfy the debt
______ 6. credit terms that provide for a 2% discount for early payment