Question Details

Jake- Market recorded the following events 



1. In a perpetual inventory system, the amount of the discount allowed for paying for
merchandise purchased within the discount period is credited to
a. Merchandise Inventory.
b. Purchase Discounts.
c. Purchase Allowance.
d. Sales Discounts.
2. Zach- Market recorded the following events involving a recent purchase of merchandise:
Received goods for $50,000, terms 2/10, n/30.
Returned $1,000 of the shipment for credit.
Paid $250 freight on the shipment.
Paid the invoice within the discount period.
As a result of these events, the company- merchandise inventory
a. increased by $48,020.
b. increased by $49,250.
c. increased by $48,265.
d. increased by $48,270.
3. Jake- Market recorded the following events involving a recent purchase of merchandise:
Received goods for $20,000, terms 2/10, n/30.
Returned $400 of the shipment for credit.
Paid $100 freight on the shipment.
Paid the invoice within the discount period.
As a result of these events, the company- merchandise inventory
a. increased by $19,208.
b. increased by $19,700.
c. increased by $19,306.
d. increased by $19,308.
4. A credit sale of $800 is made on April 25, terms 2/10, n/30, on which a return of $50 is
granted on April 28. What amount is received as payment in full on May 4?
a. $735
b. $784
c. $800
d $750
5. The entry to record the receipt of payment within the discount period on a sale of $750
with terms of 2/10, n/30 will include a credit to
a. Sales Discounts for $15.
b. Cash for $735.
c. Accounts Receivable for $750.
d. Sales for $750.




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