Required a. Transportation-in. b. Allowance received for damaged inventory. c. Purchase of inventory. d. Purchase of office supplies. Transportation-out. e. f. Cash discount given on goods sold.
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- QUESTION 8 If title to merchandise purchases passes to the buyer when the goods are shipped from the seller, the terms are a. FOB shipping point b. n/30 c. FOB destination d. consignedQuestion 5 of 20: Select the best answer for the question. 5. The term used to designate that the buyer of merchandise is responsible for the transportation costs of shipping the merchandise is OA.F.O.B. shipping point. OB.E.O.M. destination. OC. E.O.M. shipping point. OD.F.O.B. destination. Mark for review (Will be highlighted on the review page) >3 In accounting for consignment sales, sales revenue and the related cost of goods sold should be recognized by the Group of answer choices Consignor when the goods are shipped to the consignee Consignee when cash is received from the customer Consignor when notification is received that the consignee has sold the goods Consignor when the goods are shipped to the third party
- When the transportation charges are paid by the seller, merchandise is shipped a. FOB destination b. FOB shipping c. FOB carrier d. PrepaidIf title to merchandise purchases passes to the buyer when the goods are delivered to the buyer, the terms are a. consigned b. n/30 c. FOB shipping point d. FOB destinationQUESTION 6 When a buyer returns merchandise purchased on account, the buyer will record the transaction as a a. debit to Merchandise Inventory; a credit to Cash b. debit to Sales; a credit to Accounts Payable c. debit to Accounts Payable; a credit to Merchandise Inventory d. debit to Cash; a credit to Sales
- What happens when merchandise is delivered FOB shipping point? Multiple Choice O O The seller records transportation-out expense. O The buyer records transportation cost as an expense. O The buyer pays the freight cost. The seller pays the freight cost.Multiple choice 1. Copies of sales invoice are used to do all of the following except A. Ship the merchandise B. Bill the costumer C. Record the sale D. Record the receipt of merchandiseQuèstion 14 Selling expenses DOES NOT include: OA. Making sales OB. Accounting and Human Resources expense OC. Delivering goods to customers OD. Advertising expense Quèstion 16 Net Sales are calculated using: OA. Gross sales, sales returns & allowances, sales discount OB. Gross sales, cost of good available for sale, cost of goods sold OC. Gross sales, cost of goods sold, sales expenses OD. Gross sales, cost of sales, purchases
- Merchandise Accounting Merchandise Inventory Raw materials Work in process Finished goods Gross profit Net sales Sales revenue Cost of goods available for sale Cost of goods sold Perpetual system Periodic system Transportation-In Purchases FOB destination point FOB shipping point Gross profit ratio An adjunct account used to record freight costs paid by the buyer. A system in which the Inventory account is increased at the time of each purchase and decreased at the time of each sale. Terms that require the seller to pay for the cost of shipping the merchandise to the buyer. Terms that require the buyer to pay for the shipping costs. A system in which the Inventory account is updated only at the end of the period. Beginning inventory plus cost of goods purchased. An account used in a periodic inventory system to record acquisitions of merchandise. Sales revenue less sales returns and allowances and sales discounts. Cost of goods available for sale minus ending inventory. Gross profit divided by net sales. Net sales less cost of goods sold. The cost of unfinished products in a manufacturing company. The account wholesalers and retailers use to report inventory held for sale. The inventory of a manufacturer before the addition of any direct labor or manufacturing overhead. A manufacturers inventory that is complete and ready for sale. A representation of the inflow of assets from the sale of a product.ces For each transaction of Sealy Company, (a) determine whether or not Sealy owns the goods during transit. (b) If Sealy is responsible for transportation costs, record the entry for shipping costs assuming they are paid in cash and the perpetual inventory system is used. Complete this question by entering your answers in the tabs below. Required A Required B Determine whether or not Sealy owns the goods during transit. Transaction 1. Purchased goods FOB shipping point. Transportation costs are $730. 2. Sold goods FOB destination. Transportation costs are $330. 3. Sold goods FOB shipping point. Transportation costs are $480. 4. Purchased goods FOB destination Transportation costs are $190. Sealy has Ownership? Required B >Q-1: The following accounts are included in the ledger of David Company: Advertising expense Freight-in Inventory Purchases Purchase returns and allowances Sales Sales returns and allowances Which of the accounts would be included in calculating cost of goods sold?