Merchandising Take Home Quiz1

I. Determine the amount to be paid in full settlement of each of the following invoices, assuming that the credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. GoodsTrade DiscountsTransportation Paid by the SellerTermsReturns and AllowancesCash Payment?

1.P 6,00010%P 160FOB shipping point,1/10,n/30P 1,500

2.P 1,0005%,10%P0FOB shipping point, 2/10,n/30 600

3.P 8,00010%, 20%100FOB destination, n/30 400

4.P 4,0005%, 15% 75FOB shipping point, 3/10,n/30 100

5.P 5,0005%, 10%,15%130FOB destination,2/10,n/30 150

II. Matching Type: Select the best answer from the given list. Use CAPITAL LETTERS.A.Allowance MethodJ.Adjusted Trial Balance

B.Cash DiscountK.Debit Memorandum

C.Credit MemorandumL.Post Closing Trial Balance

D.FOB shipping pointM.FOB destination

E.Perpetual Inventory SystemN.Periodic Inventory System

F.Purchase returnsO.Sales returns

G.Purchase returns and allowancesP.Input VAT

H.PurchasesQ.Direct Write-off

I.Trade DiscountsR.Output VAT

1. A reduction in the list price of merchandise usually given to wholesalers for buying frequently and in large quantities.2. Under periodic inventory system this account is used when merchandise is acquired or bought.3. The document issued by the seller, allowing the returns of merchandise or a price reduction.4. The discount taken by the buyer for early payment of an invoice..5. The shipping terms if the buyer bears the shipping costs.6. This pertains when the buyer return the merchandise due to excess delivery, damages or inferior quality.7. The account used to record the 12% VAT imposed on the sale of goods and services.8. In this method, Account Receivable that is determined to be really not collectible is cancelled.

III. Determining omitted amounts: Two items are omitted in each of the following lists of income statement data. Determine the amounts of the missing items.

A. Income Statement

Sales 600,000 (3.) 115,000

Sales Returns and Allowances 20,000 1,450 8,000

Sales Discounts 5,000 650 2,000

Net Sales(1.) 52,900 105,000

Cost of Goods Sold 150,000 (4.) 50,000

Gross Profit 425,000 22,900 (5.)

Operating Expenses 250,000 15,200 25,000

Net Income(2.) 7,700 (6.)

B. Cost of Goods Sold

Merchandise Inventory, beginning 50,000 - (11.)

Purchases 146,000 (9.) 65,000

Freight-in 2,000 1,250 -

Purchase Returns and Allowances 10,000 - 10,000

Purchase Discounts 8,000 700 2,000

Total Goods Available for Sale(7.) 35,550 65,000

Merchandise Inventory, end 30,000 (10.) 15,000

Cost of Goods Sold (8.) 30,000 (12.)