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Question 1

Which of the following is the correct journal entry for freight paid on goods purchased by a merchandiser using the periodic inventory system?

A) Accounts Payable

Cash

B) Freight In

Cash

C) Merchandise Inventory

Accounts Payable

D)Purchases

Accounts Payable

Question 2

The revenue, expenses, Sales Returns and Allowances, and Sales Discounts will be closed via the ________.

A)Retained Earnings account

B)Income Summary account

C)Dividend account

D)Fixed asset account

Question 3

Michelin Jewelers uses the perpetual inventory system. On April 2, Michelin sold goods with a cost of $5,500 for $9,000 with terms of 3/15, n/30. On April 4, the customer reported damaged goods and Michelin granted a $1,000 sales allowance. On April 10, Michelin received the payment for the sale. Give the journal entry that will be recorded on April 10 by Michelin.

A)Cash 8,000

Accounts Receivable 8,000

B)Accounts Receivable 8,000

Sales 8,000

C)Cash 8,000

Sales Discount 240

Accounts Receivable 7,760

D)Cash 7,760

Sales Discount 240

Accounts Receivable 8,000

1 Answer

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  • 5 years ago
    Favorite Answer

    Q 1 - B Q - 2- B Q3 - D

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