81.Dollar Co. sold merchandise to Pound Co. on account, $25,500, terms 2/15, net 45. The Pound Co. paid the invoicewithin the discount period. What is the sales amount to be recorded in the above transactions?
a. $25,500
b. $26,010
c. $24,990
d. $16,000
82.The primary difference between the periodic and perpetual inventory systems is that a
a.periodic system determines the inventory on hand only at the end of the accounting period
b.periodic system keeps a record showing the inventory on hand at all times
c.periodic system provides an easy means to determine inventory shrinkage
d.periodic system records the cost of the sale on the date the sale is made
83.Using a perpetual inventory system, the entry to record the sale of merchandise on account includes a
a.debit to Sales
b.debit to Merchandise Inventory
c.credit to Merchandise Inventory
d.credit to Accounts Receivable
84.Which of the following accounts has a normal debit balance?
a.Accounts Payable
b.Merchandise Inventory
c.Sales
d.Interest Revenue
85.Merchandise is ordered on November 10; the merchandise is shipped by the seller and the invoice is prepared,dated, and mailed by the seller on November 13; the merchandise is received by the buyer on November 18; theentry is made in the buyer's accounts on November 20. The credit period begins with what date?
a.November 10
b.November 13
c.November 18
d.November 20
86.Using a perpetual inventory system, the entry to record the return from a customer of merchandise sold on accountincludes a
a.credit to Customer Refunds Payable
b.debit to Merchandise Inventory
c.credit to Merchandise Inventory
d.debit to Cash
87.If merchandise sold on account is returned to the seller, the seller acknowledges the return by issuing a
a.sales invoice
b.purchase invoice
c.credit memo
d.debit memo
88.The arrangements between buyer and seller as to when payments for merchandise are to be made are called
a.credit terms
b.net cash
c.cash on demand
d.gross cash
89.In credit terms of 3/15, n/45, the "3" represents the
a.number of days in the discount period
b.full amount of the invoice
c.number of days when the entire amount is due
d.percent of the cash discount
90.Merchandise with a sales price of $5,000 is sold on account with terms 2/10, n/30. The journal entry to record thesale would include a
a.debit to Cash for $5,000
b.debit to Sales Discounts for $100
c.credit to Sales for $4,900
d.debit to Accounts Receivable for $4,880