83) Match the items below with the appropriate statements.
A = The expenditure should be included in the inventory account.
B = The expenditure should
NOT
be included in the inventory account.
______ 1. UIO Co. pays $330 to insure merchandise while it is on the shelves waiting to be sold.
______ 2. RXD was billed $500 for merchandise that it had already returned to the vendor.
______ 3. YUH Company paid $12,600 to a supplier for merchandise it had purchased on credit two months earlier.
______ 4. TGF Company purchases 500 units of merchandise at a cost of $1.40 each.
______ 5. GLO Company pays $560 of import tariffs associated with a purchase of merchandise from an overseas supplier.
______ 6. EOP Inc. pays for freight on goods that it purchased with credit terms of FOB shipping point.
______ 7. RFV Company pays the purchasing manager a $70,000 annual salary.
84) Match the descriptions below to the correct credit or shipping terms. Some terms may be used more than once. Others may not be used at all.
a. 2/10, n/30
b. 1/15, n/45
c. n/30
d. 3/10, n/60
e. FOB destination
f. FOB shipping point
______ 1. would result in a $200 discount for early payment of a $10,000 purchase
______ 2. shipping terms that would typically mean that the buyer has to pay the freight charges
______ 3. credit terms that allow the buyer a maximum of two months to pay the debt
______ 4. credit terms that do not allow a discount for early payment
______ 5. would result in a $150 discount for early payment of a $5,000 purchase
______ 6. credit terms that would set May 2 as the latest payment date to take a discount on an April 17 purchase