preview

Acct 201 test 2

Better Essays
Open Document

A.
Sales discount
E.
FOB shipping point
H.
Purchase discount
B.
Credit period
F.
Gross profit
I.
Cash discount
C.
Discount period
G.
Merchandise inventory
J.
Trade discount
D.
FOB destination

1. Goods a company owns and expects to sell to its customers. G
2. Time period that can pass before a customer’s payment is due. B
3. Seller’s description of a cash discount granted to buyers in return for early payment. A
4. Reduction below list or catalog price that is negotiated in setting the price of goods. J
5. Ownership of goods is transferred when the seller delivers goods to the carrier. E
6. Purchaser’s description of a cash discount received from a supplier of goods. H
7. Reduction in a receivable or payable if it is paid …show more content…

Cost of merchandise sold to customers in sales transactions
$
196,000 Merchandise inventory, December 31, 2012 25,000 Invoice cost of merchandise purchases 192,500 Shrinkage determined on December 31, 2013 800 Cost of transportation-in 2,900 Cost of merchandise returned by customers and restored to inventory 2,100 Purchase discounts received 1,700 Purchase returns and allowances 4,000

Record the summarized activities in the T-accounts below. Merchandise Inventory
Balance, Dec. 31, 2012
25,000
Purchase discounts received
1,700
Invoice cost of purchases
192,500
Purchase returns and allowances
4,000
Returns by customers
2,100
Cost of sales

Get Access
Related
Get Access