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Merchandise inventory is an asset reported on the balance sheet and also has the price of products purchased for sale.
Determine which statements listed below are correct regarding merchandise obtainable for sale in the time of a period.(Check all that apply.)
Ending inventory + Cost of goods marketed = Merchandise easily accessible for sale, Beginning inventory + Net purchases = Merchandise easily accessible for sale
X-Mart purchased $300 of merchandise on account. Demonstrate the journal entry to record this transaction, assuming the perpetual inventory system is supplied.
Cost of goods offered includes the prices of buying and also preparing an object for sale. Cost of products marketed is offered to figure gross profit. Cost of goods offered is additionally dubbed price of sales. Cost of items sold is an cost reported on the revenue statement.
Review the complying with credit terms and identify the one that claims that the buyer will certainly get a 3% discount if the payment is made within 15 days. Otherwise, full payment is meant within 45 days of the invoice day.
assets that a agency owns and also inoften tends to offer, an account raised through a debit, an account showing up on a balance sheet of a merchandiser, an asset account.
Complete the following statement. Merchandise inventory that is still available for sale is thought about a(n) (asset/expense/revenue) and also is reported on the (balance sheet/earnings statement) and merchandise that is offered throughout the duration is thought about a(n) (asset/expense/liability) and also reported on the (balance sheet/revenue statement).
Merchandise inventory that is still obtainable for sale is taken into consideration a ASSET and is reported on the BALANCE SHEET and also merchandise that is sold in the time of the duration is thought about EXPENSE and reported on the INCOME STATEMENT
X-Mart purchased $300 of merchandise and also phelp instantly. Demonstrate the journal entry to document this transaction, assuming the perpetual inventory mechanism is offered.
Sjust how your expertise of what merchandise is by completing the complying with sentence. Merchandise consists of __________ that a firm acquires to remarket to ____________.
If the seller is responsible for the shipping costs of merchandise marketed, the shipping terms will certainly be specified as:
The complete payment is due within a 30-day credit period., the buyer have the right to deduct 2% of the invoice amount if payment is made within 10 days of the invoice date.
A purchase rerotate describes merchandise a ________________(buyer/seller/creditor) purchased, however then retransforms to the ___________________(buyer/seller/creditor) for a remoney of the purchase price or reduction in the amount owed.
A purchase return describes merchandise a BUYER purchased, however then returns to the SELLER for a remoney of the purchase price or reduction in the amount owed.
Sales is a(n) __________ (expense/revenue/asset) account and is reported on the ____________(income/balance) _____________(statement/sheet).
The buyer and also seller of merchandise have to agree on who is responsible for paying freight terms. Sjust how your understanding of freight terms by choosing every one of the correct statements below. (Check all that apply.)
Revenue for the sale will be tape-recorded after the items reach their destination, if the products are shipped FOB location, Terms FOB location means that the seller is responsible for shipping expenses, Terms FOB shipping point means the buyer accepts ownership when the goods depart the seller"s area of business, When the shipping costs are the obligation of the buyer, then the Merchandise Inventory account is debited for the freight charges.
Jo"s Market makes a crmodify sale for $1,000 through terms of 2/10,n/30. The expense of the merchandise is $400. The required journal entry to document the sale and also cost of the sale is:
debit Accounts Receivable $1,000; crmodify Sales $1,000; delittle Cost of Goods Sold $400; and also crmodify Merchandise Inventory $400
A sales rerevolve describes merchandise that ____________ (customers/sellers/creditors) go back to the ___________ (customer/seller/creditor) after a sale for a refund of the purchase price or reduction in the amount owed.
a sales return describes merchandise that CUSTOMERS return to the SELLER after a sale for a remoney of the purchase price or reduction in the amount owed.
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Exordinary just how to recognize gross profit on an earnings statement by selecting the correct statement listed below.