All of the following are contra accounts except: O Purchase Discounts. All of the above answers...
Sales returns and allowances and sales discounts, are both contra revenue accounts with debit balances that are deducted from sales revenue to arrive at net sales and cost of goods could also be deducted from sales revenue, but sales revenue is not deducted from itself. All of the following appear as deductions from sales revenue on an income statement for merchandisers except Sales Revenue. O Sales Returns and Allowances. Cost of Goods Sold. Sales Discounts.
20) The amount recorded for merchandise inventory includes all of the following except A) Purchase discounts. B) Returns and allowances. C) Freight costs paid by the buyer. D) Freight costs paid by the seller. E) Trade discounts. 20) 20) The amount recorded for merchandise inventory includes all of the following except A) Purchase discounts. B) Returns and allowances. C) Freight costs paid by the buyer. D) Freight costs paid by the seller. E) Trade discounts. 20)
Understand what contra accounts are. For example, Accumulated Depreciation and Sales Discounts. Be familiar with the Normal Balances of these accounts.
Which of the following accounts used in the gross method of accounting for sales discounts is considered a contra account? O a. Allowance for Sales Discounts O b. Accounts Receivable C. Cost of Merchandise Sold O d. Merchandise Inventory
QUESTION 40 All of these could be sources of economies of scale except O a. Discounts on bulk purchase of inputs b. Investment in more efficient technology c. Specialization d. A bottleneck procedure Click Save and Submit to save and submit. Click Save All Answers to
19. The account for merchandise inventory reflects all the following, EXCEPT a) includes any purchase discounts. b) includes any returns and allowances. c) includes any necessary freight costs. d) is a long-term asset. e) Merchandise inventory reflects all of the above. 11. A debit memorandum is: a) The document a buyer issues to inform the seller of a debit made to the seller's account in the buyer's records. b) The source document for the purchase of merchandise inventory c) Required...
Multiple Choice Question 106 Which of the following accounts is classified as a contra revenue account? Sales Returns and Allowances Purchase Discounts Cost of Goods Sold Sales Revenue Multiple Choice Question 107 Sales revenues are usually considered earned when goods have been transferred from the seller to the buyer. adjusting entries are made. cash is received from credit sales. an order is received.
25. With respect to the income statement A) contra revenue accounts do not appear on the income statement. B) sales discounts increase the amount of sales. C) contra revenue accounts increase the amount of operating expenses. D) sales discounts are included in the calculation of gross profit. 26. Positive operating income will result if gross profit exceeds A) costs of goods sold. B) salaries and wages expense. C) cost of goods sold plus operating expenses. D) operating expenses. 27. The...
Which of the following accounts usually has a debit balance? Purchase Discounts Sales Tax Payable Allowance for Doubtful Accounts Freight In Isaac Co. sells merchandise on credit to Sonar Co in the amount of $9,600. The invoice is dated on April 15 with terms of 1/15, net 45. If Sonar Co. chooses not to take the discount, by when should Sonar make the payment? May 30 May 15 April 25 None of the above. Under the periodic inventory system, all...
Med Labs has the following December 31, 2017, yearend unadjusted balances: Allowance for Sales Discounts SO. and Accounts Receivable. S5,00 or the S5.00 of receivables. S 1.000 are within a 2% discount prod meaning that it expects buyers to take $20 in future-period discounts arising from this period's sales a. Prepare the December 31, 2017, year-end adjusting journal entry for future sales discounts. b. Assume the same facts above and that there is a $5 year-end unadjusted credit balance in...