Question

Accounting questions

t a is used for all of the below EXCEL C) Buying of goods D) Taking a purchase discount entory system th Payine buy fresh costs Pay seller freight costs 15) s calculated operating expen After se net income C operating expenses are deducted to determine esarin D) Oss profit on A) net margin ne business made the following four inventory purchases in May. 24 A company just starting bus Total Cost May 10 units S390 May 10 200 units 650 May 15 200 units 700 May 28 170 units 680 S2.420 A physical count of merchandise inventory on May 3 the FIFO inventory method, the amount allocated to cost of goods sold A) S785. B) 5618. C) 51.635. D) S1,802. andise inventory on May 31 reveals that there are 200 units on hand. Using at allocated to cost of goods sold for May is ances less purchase discounts plus freight-in The calculation of purchases less purchase returns & allowances less purchase discount is called A) Net Purchases C) Cost of Goods Sold B) Cost of Goods Available for Sale D) Cost of Goods Purchased 26. The respective normal account balances of Purchases. Purchase Discounts, and Freight-in are A) debit, debit, debit. B) credit, credit, debit. C) debit, credit, debit. D) debit, credit, credit. 27. Kate Company uses a perpetual inventory system and purchased inventory from Phoebe Company. These costs were $500 and the terms of the shipment were FOB shipping point. Kate would have the following entry regarding the shipping charges: A) No entry on Kate's books. B) Inventory 500 Cash 500 C) Freight expense 500 Cash 500 D) Freight out 500 Cash 500 Version 2 Page 4

Answer 1

	22)	option B
		Paying Seller freight costs
	23)	option B
		net income
	24)	cost of goods sold
		390+650+700/200*170
		1635
		option c
	25)	option a
		net purchases
	26)	option c
		debit , credit,debit
	27)	option B
		inventory		500
		Cash			500