College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Question
Chapter 11A, Problem 2RQ
To determine
Indicate the accounts that are debited under net-price method, when the cash is paid for merchandise purchased after the discount period.
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Which of the following transactions would not result in an adjustment to the inventory account under a perpetual inventory system?
a.The sale of merchandise for cash
b.The sale of merchandise on credit
c.The receipt of payment from a customer within the discount period
d.The return of merchandise by a customer
3.Which of the following transactions would not result in an adjustment to the inventory account under a perpetual inventory system?
A)The return of merchandise by a customer.
B)The sale of merchandise for cash.
C)The sale of merchandise on credit.
D)The receipt of payment from a customer within the discount period.
Which of the following would not be reported on the financial statement?
a. Sales discount taken
b. Trade receivables
c. Trade discounts
d. Sales discounts not taken
Chapter 11A Solutions
College Accounting, Chapters 1-27
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Similar questions
- Which of the following is true about the Sales Returns and Allowances account? a. It is used to record the sale of merchandise. b. It is used to record the reduction of inventory. c. It is a contra account, deducted from sales. d. It is used to record discounts for prompt payment. e. None of the above.arrow_forwardWhich of the following is not included when computing Net Purchases? A. purchase discounts B. beginning inventory C. purchase returns D. purchase allowancesarrow_forwardWhich of the following accounts does not belong in the purchases and disbursement cycle? Group of answer choices a.Prepayments b.Accounts payable c.Sales returns and allowances d.Fixed assetsarrow_forward
- If a customer purchases merchandise on credit and return the defective merchandise before payment, what accounts would recognize this transaction? Assume the perpetual inventory system is used. A.Sales Discount, Cash B.Accounts Receivable, Sales Discount C.Sales Returns and Allowances, Cash D.Accounts Receivable, Sales Returns and Allowancesarrow_forwardWhat is the normal balance of the contra-revenue accounts: Sales Return and Sales Discount and Allowances accounts?arrow_forwardWhich account balance is NOT used to compute the cost of goods sold? a.Merchandise Inventory b.Purchases c.Sales d.Purchases Discountsarrow_forward
- The credit period during which the buyer of merchandise is allowed to pay usually begins with what date?arrow_forwardWhich of the following accounts does not belong in the purchases and disbursement cycle? A. Prepayments B. Accounts Payable C. Sales returns and allowances D. Fixed Assetsarrow_forwardWhat type of accounts are Sales Returns and Allowances and Sales Discounts?arrow_forward
- If a customer purchases merchandise on credit and returns the defective merchandise beforepayment, what accounts would recognize this transaction?A. sales discount, cashB. sales returns and allowances, cashC. accounts receivable, sales discountD. accounts receivable, sales returns and allowancesarrow_forwardWhich two accounts are used to recognize shipping charges for a buyer, assuming the buyerpurchases with cash and the terms are FOB Shipping Point?A. delivery expense, cashB. merchandise inventory, cashC. merchandise inventory, accounts payableD. The buyer does not record anything for shipping since it is FOB Shipping Point.arrow_forwardWhat type of account (asset, liability, etc.) is Allowance for Doubtful Accounts? What is the account used for? Do the terms FIFO and LIFO refer to techniques used in determining quantities of the various classes of merchandise on hand? Explain.arrow_forward
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