Question Details

Baden Shoe Store has a beginning merchandise inventory 


1. Net purchases plus freight-in determines
a. cost of goods sold.
b. cost of goods available for sale.
c. cost of goods purchased.
d. total goods available for sale.
2. West Company has the following account balances:
Purchases $48,000
Sales Returns and Allowances 6,400
Purchase Discounts 4,000
Freight-in 3,000
Delivery Expense 4,000
The cost of goods purchased for the period is
a. $52,000.
b. $47,000.
c. $51,000.
d. $44,600.
3. Baden Shoe Store has a beginning merchandise inventory of $30,000. During the period,
purchases were $140,000; purchase returns, $4,000; and freight-in $10,000. A physical
count of inventory at the end of the period revealed that $20,000 was still on hand. The
cost of goods available for sale was
a. $164,000.
b. $156,000.
c. $176,000.
d. $184,000.
4. In a periodic inventory system, a return of defective merchandise by a customer is
recorded by crediting
a. Accounts Payable.
b. Merchandise Inventory.
c. Purchases.
d. Purchase Returns and Allowances.
5. Which one of the following transactions is recorded with the same entry in a perpetual and
a periodic inventory system?
a. Cash received on account with a discount
b. Payment of freight costs on a purchase
c. Return of merchandise sold
d. Sale of merchandise on credit




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