Question

H File Home U Design B " Layout Insert second exam. References Mailings Zakari, Salu Review View 3 - Help Grammarly 0 11) 11) A company that uses the perpetual inventory system purchases inventory for $64,000 on account, with terms of 2/10, 1/30. Which of the following is the journal entry to record the payment made within 10 days? A) a debit to Accounts Payable for $62,720, a debit to Merchandise Inventory for $1280, and a credit to Cash for $64,000 B) a debit to Merchandise Inventory for $1280, a debit to Accounts Payable for 564,000, and a credit to Cash for $65,280 C) a debit to Accounts Payable for $64,000, a credit to Cash for 51200, and a credit to Merchandise Inventory for $62,720 D) a debit to Accounts Payable for 564,000, a credit to Merchandise Inventory for $1250, and a credit to Cash for $62,720 12) 12) Under the perpetual Inventory system, when a wholesaler retums the goods purchased on account, the account is credited A) Cost of Goods Sold B) Accounts Receivable C) Merchandise Inventory D) Accounts Payable 13) If goods are sold on terms FOB shipping point, the A) seller normally pays the transportation costs B) buyer and the seller split the transportation costs C) shipping company bears the transportation cost D) buyer normally pays the transportation costs 14) The term "freight out' refers to A) costs that are not actually paid in cash C) cost of inventory purchased B) transportation costs on purchases D) transportation costs on sales 15) FOB destination refers to a situation where title to goods while in transit belongs to the 15) Page 2 of 8 2465 words English (United States) Focus L Q ENG 17/1/2019

Answer 1

11) (D) a debit to Accounts payable for $64,000 , a credit for merchandise inventory for $1,280 and a credit to cash for $62,720.

12) (D) Accounts payable

13) (D) buyer normally pays the transportation costs.

14 (D) transportation cost on sales