Which of the following is a true statement for a company using a perpetual inventory system?...
Which of the following is a true statement for a company using a perpetual inventory system?
Multiple Choice
Purchase returns and allowances is a contra-account to accounts receivable.
Sales returns and allowances is a contra-account to revenue.
Sales returns and allowances is a contra-account to inventory.
Purchase returns and allowances is a contra-account to revenue.
Homework Answers
Sales returns and Allowances is a contra-account to revenue
As Sales return and allowances reduce the overall Sales (Revenue) of the company, also Sales Return and Allowances is shown as a debit balance separately. Whereas Sales has a credit balance hence, Sales returns and allowances is a contra-account to revenue.
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Which of the following is a true statement for a company using a
perpetual inventory system?...
1. 2. 3. 4. 5. A company that maintains a perpetual inventory system has an inventory...
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A company that maintains a perpetual inventory system has an inventory account balance of $50,000. The physical count of goods on hand totals $49,600. Which of the following adjusting entries is correct? O Debit Sales Discounts and credit Inventory O Debit Purchases and credit Inventory O Debit Cost of Goods Sold and credit Inventory. O Debit Inventory and credit Purchases Which of the following accounts will appear in the trial balance of a merchandising company...
5) A purchase return or allowance under a perpetual inventory system is credited to: A) Accounts...
5) A purchase return or allowance under a perpetual inventory system is credited to: A) Accounts Payable B) Purchase Returns and Allowances C) Inventory D) Purchases 6) Which of the following accounts is not a contra account? A. Inventory B. Accumulated Amortization C. Sales Returns and Allowances D. Sales Discounts 7) To calculate the gross margin percentage, A. Divide net sales by net income B. Divide current assets by current liabilities C. Divide total liabilities by total assets D. Divide...
Using a perpetual Inventory system, how should a company record the sale of Inventory costing $450...
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Your company uses the Perpetual Inventory system. What is the 4-row journal entry to record...
Your company uses the Perpetual Inventory system. What is the 4-row journal entry to record a cash-based sale? (1) dr. (to record the sale) > Choose... (2) cr. (to record the sale) Choose... (3) dr. (to remove inventory) cr. Sales Revenue dr. Cash (4) cr. (to remove inventory) dr. Cost of Goods Sold cr. Merchandise Inventory Your company uses the Periodic Inve dr. Merchandise Inventory What is the journal entry when a cuscr. Cash purchas dr. Accounts Receivable dr....
Which of the following statements is true regarding sales returns and allowances? Multiple Choice Estimated sales...
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A company using the perpetual inventory system purchased inventory worth $500.000 on account with crede terms...
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Using a perpetual inventory system, the seller's journal entry to record the return, by the buyer,...
Using a perpetual inventory system, the seller's journal entry to record the return, by the buyer, of merchandise purchased on account includes a: Select one: a. Credit to Purchases Returns b. Debit to Sales Returns and Allowances c. Debit to Accounts Receivable d. Debit to Cost of Goods Sold
Using a perpetual inventory system, how should a company record the sale of inventory costing $520...
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Your company uses the Perpetual Inventory system. What is the 4-row journal entry to record a...
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MULTIPLE CHOICE. Choose the one alternative that best completes the statement or an uestion. 1) Goods...
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1.
2.
3.
4.
5.
A company that maintains a perpetual inventory system has an inventory account balance of $50,000. The physical count of goods on hand totals $49,600. Which of the following adjusting entries is correct? O Debit Sales Discounts and credit Inventory O Debit Purchases and credit Inventory O Debit Cost of Goods Sold and credit Inventory. O Debit Inventory and credit Purchases Which of the following accounts will appear in the trial balance of a merchandising company...
Using a perpetual Inventory system, how should a company record the sale of Inventory costing $450 for $910 on account? 450 450 910 916 11. Inventory cost of Goods Sold Sales Revenue Accounts Receivable 2. Accounts Receivable Sales Revenue Cost of Goods Sold Inventory Inventory Gain Sales Revenue 4. Accounts Receivable Sales Revenues Gain SA 910 Multiple Choice 0 0 0 Option 3 0 Option 1
Your company uses the Perpetual Inventory system. What is the 4-row journal entry to record a cash-based sale? (1) dr. (to record the sale) > Choose... (2) cr. (to record the sale) Choose... (3) dr. (to remove inventory) cr. Sales Revenue dr. Cash (4) cr. (to remove inventory) dr. Cost of Goods Sold cr. Merchandise Inventory Your company uses the Periodic Inve dr. Merchandise Inventory What is the journal entry when a cuscr. Cash purchas dr. Accounts Receivable dr....
A company using the perpetual inventory system purchased inventory worth $500.000 on account with crede terms of 3/16, 1/40. Defective inventory of 570.000 was returned 3 days later, and the accounts were appropriately adjusted if the company paid the invoice 30 days later, the journal entry to record the payment would be O A 5430.000 debit to Accounts Payable and 5430,000 credit to Cash O . 5500.000 debit to Accounts Payable and $500,000 credit to Cash OC. 3500,000 debit to...
Using a perpetual inventory system, the seller's journal entry to record the return, by the buyer, of merchandise purchased on account includes a: Select one: a. Credit to Purchases Returns b. Debit to Sales Returns and Allowances c. Debit to Accounts Receivable d. Debit to Cost of Goods Sold
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