Questions And Answers Questions Ask question Search Order By: ActiveCategoryClear Filter 0 Votes 1 Ans . If the buyer bears the freight costs related to a purchase, the terms are said to be FOB destination. 559 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans Merchandise is sold for $3,600, terms FOB destination, 2/10, n/30, with prepaid freight costs of $150. If $500 of the merchandise is returned prior to payment and the invoice is paid within the discount period, the amount of the sales discount is $65 1.34K viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans The abbreviation FOB stands for Free On Board. 586 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans When merchandise is sold for $600 plus 6% sales tax, the Sales account should be credited for $636. 624 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans A sale of $750 on account, subject to a sales tax of 6%, would be recorded as an account receivable of $750 677 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans If the ownership of merchandise passes to the buyer when the seller delivers the merchandise for shipment, the terms are stated as FOB destination 836 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans A deduction allowed to wholesalers and retailers from the price of merchandise listed in catalogs is called cash discounts. 771 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans When a large quantity of merchandise is purchased, a reduction allowed on the sale price is called a trade discount. 714 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans When the seller offers a sales discount, even if borrowing has to be done, it is generally advantageous for the buyer to pay within the discount period 813 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans Purchases of merchandise are typically credited to the merchandise inventory account under the perpetual inventory system 792 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans Under the perpetual inventory system, a company purchases merchandise on terms 2/10, n/30. If payment is made within 10 days of the purchase, the entry to record the payment will include a credit to Cash and a credit to Purchase Discounts 1.22K viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans In a perpetual inventory system, merchandise returned to vendors reduces the merchandise inventory account. 685 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans Discounts taken by the buyer for early payment of an invoice are credited to Sales Discounts by the buyer 549 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans A buyer who acquires merchandise under credit terms of 1/10, n/30 has 30days after the invoice date to take advantage of the cash discount 786 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans Merchandise Inventory normally has a debit balance 621 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans The effect of a sales return and allowance is a reduction in sales revenue and a decrease in cash or accounts receivable 604 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans A seller may grant a buyer a reduction in selling price and this is called a sales allowance. 610 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans The service fee that credit card companies charge retailers varies and is the primary reason why some businesses do not accept all credit cards 572 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans Retailers record all credit card sales as credit sales 556 viewsDarshita Changed status to publish February 14, 2020 0 Votes 1 Ans Current liabilities are liabilities expected to be settled after twelve months or one operating cycle if it is longer 559 viewsAnonymous deleted answer February 13, 2020 « Previous 1 2 … 15 16 17 18 19 … 128 129 Next »
