a152.Cost of goods available for sale is computed by adding
a.beginning inventory to net purchases.
b.beginning inventory to the cost of goods purchased.
c.net purchases and freight-in.
d.purchases to beginning inventory.
a
153.The Freight-in account
a.increases the cost of merchandise purchased.
b.is contra to the Purchases account.
c.is a permanent account.
d.has a normal credit balance.
a
154.Net purchases plus freight-in determines
a.cost of goods sold.
b.cost of goods available for sale.
c.cost of goods purchased.
d.total goods available for sale.
a155.Powers Company has the following account balances:
Purchases$72,000
Sales Returns and Allowances9,600
Purchase Discounts6,000
Freight-in4,500
Delivery Expense6,000
The cost of goods purchased for the period is
a.$78,000.
b.$70,500.
c.$76,500.
d.$66,900.
a156.Gould Shoe Store has a beginning merchandise inventory of $30,000. During the period, purchases were $140,000; purchase returns, $4,000; and freight-in $10,000. A physical count of inventory at the end of the period revealed that $20,000 was still on hand. The cost of goods available for sale was
a.$164,000.
b.$156,000.
c.$176,000.
d.$184,000.
a157.In a periodic inventory system, a return of defective merchandise to a supplier is recorded by crediting
a.Accounts Payable.
b.Merchandise Inventory.
c.Purchases.
d.Purchase Returns and Allowances.
a158.Which one of the following transactions is recorded with the same entry in a perpetual and a periodic inventory system?
a.Cash received on account with a discount
b.Payment of freight costs on a purchase
c.Return of merchandise sold
d.Sale of merchandise on credit
a159.The journal entry to record a return of merchandise purchased on account under a periodic inventory system would be
a.Accounts Payable
Purchase Returns and Allowances
b.Purchase Returns and Allowances
Accounts Payable
c.Accounts Payable
Inventory
d.Inventory
Accounts Payable
a160.Under a periodic inventory system, acquisition of merchandise is debited to the
a.Merchandise Inventory account.
b.Cost of Goods Sold account.
c.Purchases account.
d.Accounts Payable account.
a161.Which of the following accounts has a normal credit balance?
a.Purchases
b.Sales Returns and Allowances
c.Freight-in
d.Purchase Discounts
a