Question

THANK YOU SO MUCH I WILL BE SURE TO LEAVE A GREAT RATING AND NOTE!!!!! 20. The primary difference between the periodic and perpetual inventory systems is that a periodic system determines the inventor...

THANK YOU SO MUCH I WILL BE SURE TO LEAVE A GREAT RATING AND NOTE!!!!!

20. The primary difference between the periodic and perpetual inventory systems is that a

periodic system determines the inventory on hand only at the end of the accounting period

periodic system provides an easy means to determine inventory shrinkage

periodic system records the cost of the sale on the date the sale is made

periodic system keeps a record showing the inventory on hand at all times

21.Merchandise is ordered on November 10; the merchandise is shipped by the seller and the invoice is prepared, dated, and mailed by the seller on November 13; the merchandise is received by the buyer on November 18; the entry is made in the buyer's accounts on November 20. The credit period begins with what date?

November 18

November 10

November 20

November 13

22. Using a perpetual inventory system, the entry to record the return from a customer of merchandise sold on account includes a

debit to Inventory

credit to Customer Refunds Payable

debit to Cash

credit to Inventory

23.The arrangements between buyer and seller as to when payments for merchandise are to be made are called

net cash

gross cash

credit terms

cash on demand

24.If the buyer is to pay the freight costs of delivering merchandise, delivery terms are stated as

FOB destination

FOB n/30

FOB buyer

FOB shipping point

25.Which document authorizes the purchase of the inventory from an approved vendor?

the petty cash voucher

the vendor's invoice

the purchase order

the receiving report

26. The primary objectives of control over inventory are

a.safeguarding the inventory from damage and maintaining constant observation of the inventory.

b.maintaining constant observation of the inventory and reporting inventory in the financial statements.

c.reporting inventory in the financial statements.

d.safeguarding inventory from damage and reporting inventory in the financial statements.

27. When merchandise sold is assumed to be in the order in which the purchases were made, the company is using

a.first-in, last-out.

b.first-in, first-out.

c.average cost.

d.last-in, first-out.

28. The inventory costing method that reports the most current prices in ending inventory is

a.LIFO.

b.FIFO.

c.average cost.

d.specific identification.

29. When using a perpetual inventory system, the journal entry to record the cost of goods sold is:

debit Cost of Goods Sold; credit Inventory

debit Cost of Goods Sold; credit Sales

No journal entry is made to record the cost of goods sold.

debit Inventory; credit Cost of Goods Sold

30. During a period of consistently rising prices, the method of inventory that will result in reporting the greatest cost of goods sold is

a.average cost.

b.weighted average.

c.FIFO.

d.LIFO.

0 0
Add a comment Improve this question Transcribed image text
Know the answer?
Add Answer to:
THANK YOU SO MUCH I WILL BE SURE TO LEAVE A GREAT RATING AND NOTE!!!!! 20. The primary difference between the periodic and perpetual inventory systems is that a periodic system determines the inventor...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Under the perpetual inventory system the Merchandise inventory account is continuously updated as purchases, sales, and...

    Under the perpetual inventory system the Merchandise inventory account is continuously updated as purchases, sales, and relurns occur and under periodic inventory system the Merchandise inventory account slays as its beginning balance unti the physical inventory is recorded at the and of the accounting period. True False Under the perpetual inventory systerm, in addition to making the entry to record a sala, a company wouid: A. Debit Marchandise Inventory and credit Cost of Goods Sold B. Debit Cost of Goods...

  • CH Required information A seller uses a perpetual inventory system, and on April 17, a customer...

    CH Required information A seller uses a perpetual inventory system, and on April 17, a customer returns $1,000 of merchandise previously purchased on credit on April 13. The seller's cost of the merchandise returned was $480. The merchandise is not defective and is restored to inventory. The seller has not yet received any cash from the customer. Complete the two Journal entries to record the return transaction by selecting the account names from the drop-down menus and entering the dollar...

  • 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...

  • EX#2 - Glossary: Define an inventory system in which the company does not maintain detailed records...

    EX#2 - Glossary: Define an inventory system in which the company does not maintain detailed records of goods on hand throughout the accounting period and determines cost of goods sold only at the end of the accounting period. A Perpetual inventory system Periodic inventory system Just-in-Time Inventory System 0. Specific Identification Inventory Method TEXA2-Glossary: A perpetual inventory System Als updated each time an Her is purchase and updates cost of goods sold. B. Uses optical scanners and bar codes to...

  • Knowledge Check 01 A seller uses a perpetual inventory system, and on April 18, a customer...

    Knowledge Check 01 A seller uses a perpetual inventory system, and on April 18, a customer discovers that merchandise previously purchased is defective. The buyer decides to keep the defective merchandise and the seller allows a $15 price reduction, paid in cash to the buyer. Complete the journal entry to record the allowance granted to the buyer by selecting the account names from the drop-down menus and entering the dollar amounts in the debitor credit columns View transaction list Journal...

  • Sales-Related and Purchase-Related Transactions for Seller and Buyer Using Perpetual Inventory System The following selected transactions...

    Sales-Related and Purchase-Related Transactions for Seller and Buyer Using Perpetual Inventory System The following selected transactions were completed during August between Summit Company and Beartooth Co.: Sales-Related and Purchase-Related Transactions for Seller and Buyer Using Perpetual Inventory System The following selected transactions were completed during August between Summit Company and Beartooth Co.: Aug. 1. Summit Company sold merchandise on account to Beartooth Co., $48,750, terms FOB destination, 2/15, n/eom. The cost of the goods sold was $27,000. 2. Summit Company...

  • Sales and Purchase-Related Transactions for Seller and Buyer Using Perpetual Inventory System The following selected transactions...

    Sales and Purchase-Related Transactions for Seller and Buyer Using Perpetual Inventory System The following selected transactions were completed during April between Swan Company and Bird Company. Both companies use the net method under a perpetual inventory system. Apr. 2. Swan Company sold merchandise on account to Bird Company, $58,300, terms FOB shipping point, 2/10, n/30. Swan paid freight of $1,725, which was added to the invoice. The cost of the goods sold was $34,220. 8. Swan Company sold merchandise on...

  • A company using the perpetual inventory system purchased inventory worth $500.000 on account with crede terms...

    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,...

    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

  • 16-20 Weston Jewellers uses the perpetual inventory system. On April 2. Weston sold merchandise with a...

    16-20 Weston Jewellers uses the perpetual inventory system. On April 2. Weston sold merchandise with a cost of 407 314,152 for delivery of the merchandise. Calculate the amount of net sales revenue Round any intermediary G ions and your fa 4/15.30 Westonad 150 custom count with the t hers ) O A 514.902 OR $8,487 OC. 514.258 OD. $14,652 ance is $35.000. Which of the following ould be included in the . The Merchandise inventory account balance is $80,000. A...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT