Acct 201 test 2
A.
Sales discount
E.
FOB shipping point
H.
Purchase discount
B.
Credit period
F.
Gross profit
I.
Cash discount
C.
Discount period
G.
Merchandise inventory
J.
Trade discount
D.
FOB destination
1. Goods a company owns and expects to sell to its customers. G
2. Time period that can pass before a customer’s payment is due. B
3. Seller’s description of a cash discount granted to buyers in return for early payment. A
4. Reduction below list or catalog price that is negotiated in setting the price of goods. J
5. Ownership of goods is transferred when the seller delivers goods to the carrier. E
6. Purchaser’s description of a cash discount received from a supplier of goods. H
7. Reduction in a receivable or payable if it is paid within the discount period. I
8. Difference between net sales and the cost of goods sold. F
9. Time period in which a cash discount is available. C
10. Ownership of goods is transferred when delivered to the buyer’s place of business. D
Apr. 2
Purchased merchandise from Lyon Company under the following terms: $4,600 price, invoice dated April 2, credit terms of 2/15, n/60, and FOB shipping point.
3
Paid $300 for shipping charges on the April 2 purchase.
4
Returned to Lyon Company unacceptable merchandise that had an invoice price of $600.
17
Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise.
18
Purchased merchandise from Frist Corp. under the following terms: $8,500 price, invoice dated April 18, credit terms of 2/10, n/30, and FOB destination.
21
After negotiations, received from Frist a $1,100 allowance on the April 18 purchase.
28
Sent check to Frist paying for the April 18 purchase, net of the discount and allowance. Prepare journal entries to record the above transactions for a retail store. Assume a perpetual inventory system.
Apr. 2
Merchandise Inventory
4,600
Accounts Payable—Lyon 4,600 Purchased merchandise on credit.
Sales discount
E.
FOB shipping point
H.
Purchase discount
B.
Credit period
F.
Gross profit
I.
Cash discount
C.
Discount period
G.
Merchandise inventory
J.
Trade discount
D.
FOB destination
1. Goods a company owns and expects to sell to its customers. G
2. Time period that can pass before a customer’s payment is due. B
3. Seller’s description of a cash discount granted to buyers in return for early payment. A
4. Reduction below list or catalog price that is negotiated in setting the price of goods. J
5. Ownership of goods is transferred when the seller delivers goods to the carrier. E
6. Purchaser’s description of a cash discount received from a supplier of goods. H
7. Reduction in a receivable or payable if it is paid within the discount period. I
8. Difference between net sales and the cost of goods sold. F
9. Time period in which a cash discount is available. C
10. Ownership of goods is transferred when delivered to the buyer’s place of business. D
Apr. 2
Purchased merchandise from Lyon Company under the following terms: $4,600 price, invoice dated April 2, credit terms of 2/15, n/60, and FOB shipping point.
3
Paid $300 for shipping charges on the April 2 purchase.
4
Returned to Lyon Company unacceptable merchandise that had an invoice price of $600.
17
Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise.
18
Purchased merchandise from Frist Corp. under the following terms: $8,500 price, invoice dated April 18, credit terms of 2/10, n/30, and FOB destination.
21
After negotiations, received from Frist a $1,100 allowance on the April 18 purchase.
28
Sent check to Frist paying for the April 18 purchase, net of the discount and allowance. Prepare journal entries to record the above transactions for a retail store. Assume a perpetual inventory system.
Apr. 2
Merchandise Inventory
4,600
Accounts Payable—Lyon 4,600 Purchased merchandise on credit.