Name: 
 

sales problem


Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.
 

1. 
Generally, the revenue account for a merchandising business is entitled:
a.
Sales
b.
Net Sales
c.
Gross Sales
d.
Gross Profit
 

2. 
Using a perpetual inventory system, the entry to record the sale of merchandise on account includes a:
a.
debit to Sales
b.
debit to Merchandise Inventory
c.
credit to Merchandise Inventory
d.
credit to Accounts Receivable
 

3. 
A sales invoice included the following information: merchandise price, $5,000; transportation, $300; terms 1/10, n/eom, FOB shipping point. Assuming that a credit for merchandise returned of $600 is granted prior to payment, that the transportation is prepaid by the seller, and that the invoice is paid within the discount period, what is the amount of cash received by the seller?
a.
$4,356
b.
$4,400
c.
$4,656
d.
$4,950
 

4. 
Using a perpetual inventory system, the entry to record a customer's return of merchandise sold on account includes a:
a.
credit to Sales Returns and Allowances
b.
debit to Merchandise Inventory
c.
credit to Merchandise Inventory
d.
debit to Cost of Merchandise Sold
 



 
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