Question Details

The journal entry to record a return of merchandise 


1. Under a perpetual inventory system, acquisition of merchandise for resale is debited to
the
a. Merchandise Inventory account.
b. Purchases account.
c. Supplies account.
d. Cost of Goods Sold account.
2. The journal entry to record a return of merchandise purchased on account under a
perpetual inventory system would credit
a. Accounts Payable.
b. Purchase Returns and Allowances.
c. Sales.
d. Merchandise Inventory.
3. The Merchandise Inventory account is used in each of the following except the entry to
record
a. goods purchased on account.
b. the return of goods purchased.
c. payment of freight on goods sold.
d. payment within the discount period.
4. A buyer would record a payment within the discount period under a perpetual inventory
system by crediting
a. Accounts Payable.
b. Merchandise Inventory.
c. Purchase Discounts.
d. Sales Discounts.
5. If a purchaser using a perpetual system agrees to freight terms of FOB shipping point,
then the
a. Merchandise Inventory account will be increased.
b. Merchandise Inventory account will not be affected.
c. seller will bear the freight cost.
d. carrier will bear the freight cost.




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