Accounting Chapter 5 Quiz
Terms in this set (10)
refer to the merchandise that customers return to the seller after the sale
Sales - sales discounts - sales return and allowances =
On October 1, Robinson Company sold merchandise in the amount of $5,800 to Rosser, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Robinson uses the perpetual inventory system. The journal entry or entries that Robinson will make on October 1 is
Accounts receivable: 5,800; Sales: 5,800; Cost of goods sold: 4,000; Merchandise Inventory: 4,000
On October 1, Whaley Company sold merchandise in the amount of $5,800 to Lee Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Whaley uses the perpetual inventory system. Lee pays the invoice on October 8, and takes the appropriate discount. The journal entry that Whaley makes on October 8 is:
Cash 5,684; Sales discounts: 116; Accounts Receivable: 5,800
Which of the following accounts would be closed with a debit?
An income statement that includes cost of goods sold as another expense and shows only one subtotal for total expenses is a
single step income statement
Expenses that support the overall operations of a business and include the expenses relating to accounting, human resource management, and financial management are called:
general and administrative expenses
Expenses of promoting sales by displaying and advertising merchandise, making sales, and delivering goods to customers are:
A company has net sales and cost of goods sold of $825,000 and $547,000, respectively. Its net income is $98,500. The company's gross margin and operating expenses are ________ and ____________, respectively.
$278,000 and $179,500 Gross margin = net sales - cost of goods sold 825,000 - 547,000 = 278,000 Operating expenses = gross margin - net income 278,000 - 98,5000 = 179,500
Multiple-step income statements:
Contain more detail than a simple listing of revenues and expenses.
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