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Name: In preparing closing entries for a merchandising company, the Income
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Description: In preparing closing entries for a merchandising company, the Income Summary account will be credited for the balance offreight-out.O sales revenue.● sales discounts.● inventory.

Business

Accounting

In preparing closing entries for a merchandising company, the Income Summary account will be credited for the balance of freight-out sales revenue. sales discounts. inventory.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 13MC: Which of the following accounts are used when recording the sales entry of a sale on credit? A....

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What accounts are used to recognize a retailers purchase from a manufacturer on credit? A. accounts receivable, merchandise inventory B. accounts payable, merchandise inventory C. accounts payable, cash D. sales, accounts receivable
Which of the following accounts are used when recording the sales entry of a sale on credit? A. merchandise inventory, cash B. accounts receivable, merchandise inventory C. accounts receivable, sales D. sales, cost of goods sold
The revenue account for a merchandising business is typically called ___________. Group of answer choices inventory sales. unearned revenue. fees earned. sales or sales of merchandise.
When there is a net profit in a merchandising entity, which of the following accounts may not be credited in the closing entry? Capital Income Summary Transportation Out O Purchases Discounts
In a perpetual system, what would be the journal entry for a sales return. (a) Dr. Sales return and allowance Cr. Account receivable (b) Dr. sales Cr. Account receivable (c) Dr. Sales Cr. Merchandise inventory (d) Dr. Sales return and allowance Merchendise inventory Cr. Account receivable Cost of good solds
The return of goods by a customer ( Sales Return ) should be credited in the ledger account of ? Select one: a. Sales account O b. Accounts receivable account O c. Purchase Return account O d. Sales Return account
The entry to record the return of merchandise from a customer would include a debit to Sales credit to Sales debit to Customer Refunds Payable debit to Estimated Returns Inventory
In the preparation of the worksheet of a merchandising business, the ending balance of the merchandise inventory is to be extended to the credit column of the income statement. true or false
Activity 1. Classify Me Instruction: Identify each element or account title if it can be found on a service or merchandising business. Complete the table by putting a (v) check mark or (X) cross mark in the corresponding columns. ACCOUNTS SERVICE MERCHANDISING BUSINESS BUSINESS Ex. Professional Fees Sales Consulting Revenue Purchases Cost of Sales Inventory Beginning Referral Revenue Freight-In Purchase Returns and Allowances Advertising Revenue Purchase Discount Freight-out Unearned Revenue Utilities Expense Depreciation Expense Allowance for Bad debts Sales discount Supplies Sales Returns and allowances Advances to suppliers Advertising Expense
Under periodic accounting system, when merchandize is sold, entry is posted in which account? * (a) Cost of Sales (b) Purchases (c) Inventory (d) None
In the revenue cycle (for sales on credit), a customer places an order for a certain product. Which step does not occur before shipping the goods to the customer? Check inventory availabilityPick and pack the goodsCheck customer creditBill the customerObtain the customer order
When a customer returns goods, the merchandiser will: Group of answer choices Adecrease the Inventory account. increase the Estimated Refund Liability account. increase the customer's Accounts Receivable account. decrease the Estimated Inventory Returns account.