Liberty University ACCT 211 Quiz 2 Accounting for Merchandising, Inventories and
Control of Cash answers perfection
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Use the following information as of December 31 to determine equity.
Cash $ 67,000
Buildings 185,000
Equipment 216,000
Liabilities 151,000
A company paid $2,000 cash for this month’s utilities. Identify the general journal entry
below that the company will make to record the transaction.
Jose Consulting paid $680 cash for utilities for the current month. Determine the general
journal entry that Jose Consulting will make to record this transaction.
Which of the following accounts is not classified as a current liability?
The method refers to recording:net
Offering discounts on credit sales benefits a seller through earlier cash receipts and
reduced collection efforts.
The expenses of advertising merchandise, making sales, and delivering goods to
customers are known as:
Juniper Company uses a inventory system and the method of accountingperpetual gross
for purchases. The company purchased $9,750 of merchandise on August 7 with terms
1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 26, it paid
the full amount due. The amount of the cash paid on August 26 equals:
On March 12, Fret Company sold merchandise in the amount of $7,800 to Babson
Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Fret uses
the inventory system and the method of accounting for sales. Babsonperpetual gross
pays the invoice on March 17 and takes the appropriate discount. The journal entry that
Fret makes on March 17 is:
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A company purchases merchandise for $20,000. The seller also offers credit terms of
2/10, n/30. Assuming no returns were made, and that payment was made within the
discount period, what is the net cost of the merchandise?
Zenith Company's Merchandise Inventory account at year-end has a balance of $91,820,
but a physical count reveals that only $90,450 of inventory exists. The adjusting entry to
record this $1,370 of inventory shrinkage is:
A company had net sales of $768,400 and cost of goods sold of $551,770. Its net income
was $21,150. The company's gross margin ratio equals:
A company had a gross profit of $336,000 based on net sales of $418,000. Its cost of
goods sold equals $754,000.
Cushman Company had $814,000 in sales, sales discounts of $12,210, sales returns and
allowances of $18,315, cost of goods sold of $386,650, and $280,015 in operating
expenses. Gross profit equals:
A company purchased $3,400 of merchandise on July 5 with terms 3/10, n/30. On July 7,
