Question 1 - Use this information to answer the following question.
|
Account Name
|
Debit
|
Credit
|
|
Sales
|
|
293,000
|
|
Sales Returns and Allowances
|
10,000
|
|
|
Purchases
|
68,000
|
|
|
Purchases Returns and Allowances
|
|
8,000
|
|
Freight-In
|
12,000
|
|
|
Selling Expenses
|
30,000
|
|
|
General and Administrative Expenses
|
110,000
|
|
In addition, beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.
Net income for the period was
a. $93,000.
b. $203,000.
c. $173,000.
d. $63,000.
On June 3, Addison Company purchased merchandise worth $1,600 on credit, terms 2/10, n/30.
The account was paid on June 10. What is the required journal entry to record the payment under the periodic inventory system?
a. Accounts Payable 1,600
Purchases Discounts 32
Cash 1,568
b. Cash 1,600
Purchases Discounts 32
Accounts Payable 1,632
c. Cash 1,568
Purchases Discounts 32
Accounts Payable 1,600
d. Accounts Payable 1,568
Purchases Discounts 32
Cash 1,600
Question 2 - Use this inventory information for the month of July to answer the following question.
|
July 1
|
Beginning inventory
|
10 units @ $120
|
|
July 5
|
Purchase
|
60 units @ $112
|
|
July 14
|
Sale
|
40 units
|
|
July 21
|
Purchase
|
30 units @ $116
|
|
July 31
|
Sale
|
28 units
|
Assuming that a periodic inventory system is used, what is cost of goods sold under the average-cost method?
a. $7,752
b. $3,712
c. $7,888
d. $3,648