Merchandising Transactions Quiz
7 multiple-choice questions with answers and explanations · 5 easy, 2 medium
Buying and selling goods: credit terms, purchase and sales discounts, returns and allowances, and freight.
- 1Journal Entry — Credit SaleGoods worth $2,000 are sold on credit. Which entry records this correctly?easy
- 2Credit Terms 2/10, n/30 — MeaningAn invoice carries the credit terms "2/10, n/30". This means the buyer:easy
- 3Carriage Inwards — TreatmentCarriage inwards (freight paid on goods purchased for resale) is:easy
- 4Trade Discount vs Cash DiscountA supplier lists goods at $2,000 and grants a 10% trade discount. How is the trade discount recorded in the buyer's books?easy
- 5Computing Net SalesGross sales are $100,000, sales returns and allowances $4,000, and sales discounts $2,000. Net sales are:easy
- 6Perpetual System — Recording a PurchaseUnder a PERPETUAL inventory system, merchandise purchased on account is debited to:medium
- 7Perpetual System — Recording a SaleUnder a perpetual system, goods costing $5,000 are sold on account for $8,000. Besides Dr Accounts Receivable / Cr Sales 8,000, the seller also records:medium