ACCT 211 Learnsmart Assignment 4 Liberty University Solution

Jello's Market purchased $1,000 of goods on account with terms of 2/10,n/30. They returned $200 of the goods due to defect the next day. If the company pays for the purchase within the discount period and uses the perpetual inventory system, the required journal entry to record the payment would:

Jo’s Market sold $1,000 of goods on credit with terms of 2/10,n/30. The original cost of the goods was $400. The required journal entry to record the sale and cost of the sale would be:

Review the following statements and select the one that best describes a discount period.

Merchandise Inventory can be described as:

A sales return refers to merchandise that return to the after a sale for a refund of the purchase price or reduction in the amount owed.

Sticky Co. purchased merchandise on August 5 at a $1,000 invoice price with terms of 2/10,n/30 and paid for the merchandise on August 14. Determine its entry to record this purchase and the subsequent payment under both the gross method and the net method by matching the action on the left with the method on the right. (Assume a perpetual inventory system.)

Gross profit is calculated by taking the net __________ of a product and __________ the cost of goods sold.

X-Mart uses the perpetual Inventory system to account for its merchandise. On May 1, it sold $1,400 of merchandise on credit with terms of 1/10,n/40. Demonstrate the required journal entry to record the receipt of payment on May 25 by selecting all of the correct actions below. (Check all that apply.)

Merchandise consists of __________ that a company acquires to resell to __________.

Determine which of the following statements below regarding a merchandiser are correct.

On June 5, X-Mart purchased $400 of merchandise with the terms 2/10,n/30. If payment is made on June 11, calculate the purchase discount that may be taken by X-Mart.

If the seller is responsible for the shipping costs of merchandise sold, the shipping terms will be specified as:

Sales Discounts is a __________ account.

Sales is a(n) account and is reported on the .

Dogs R US uses the perpetual inventory system to account for its merchandise. On May 1, it returned $50 of the merchandise due to a defect. Assuming that the purchase was originally bought on credit, demonstrate the required journal entry to record by selecting all of the correct actions below.

Cost of goods sold is characterized by which of the following statements? (Check all that apply.)

ABC Co. purchased merchandise on August 5 at a $1,000 invoice price with terms of 2/10,n/30 and paid for the merchandise on August 14. Determine its entry to record this purchase and the subsequent payment under both the gross method and the net method by matching the action on the left with the method on the right. (Assume a perpetual inventory system.)

A cash discount can be summarized as a discount given to to encourage them to pay .

What is a purchase return?

Toys R Fun purchased $4,000 of merchandise and paid immediately. To record this transaction, Toys R Fun's accountant would debit the account and credit the account.

On June 5, Jo’s Market sold $1,000 of goods on credit with terms of 2/10,n/30. How will Jo’s Market record the customer’s payment on June 8?