91. The amount videotaped for merchandise list includes every one of the complying with except: 

A. Purchase discounts.

You are watching: The amount recorded for merchandise inventory includes all of the following except

B. Returns and allowances.

C. Freight prices paid by the buyer.

D. Freight expenses paid through the seller.

E. Trade discounts.

92. A firm uses the perpetual list system and also recorded the following entry

 

*
 

This entry reflects a: 

A. Purchase of was on credit.

B. Return that merchandise.

C. Sale of merchandise on credit.

D. Payment that the account payable and recognition that a 2% cash discount taken.

E. Payment of the account payable and recognition that a 1% cash discount taken.

93. A debit memorandum is: 

A. Required at any time a journal entry is recorded.

B. The source file for the acquisition of was inventory.

C. Required when a acquisition discount is granted.

D. The file a buyer concerns to notify the seller that a debit made to the seller's account in the buyer's records.

E. Not vital in a perpetual inventory system.

94. A firm purchased $1,800 of merchandise on December 5. ~ above December 7, it changed $200 worth of merchandise. ~ above December 8, it paid the balance in full, acquisition a 2% discount. The amount of the cash payment on December 8 equals: 

A. $200.

B. $1,564.

C. $1,568.

D. $1,600.

E. $1,800.

95. A agency purchased $4,000 worth of merchandise. Transportation costs were second $350. The company later reverted $275 worth of merchandise and paid the invoice within the 2% cash discount period. The complete amount paid for this was is: 

A. $3,725.00.

B. $3,925.00.

C. $3,995.00.

D. $4,000.50.

E. $4,075.00.

96. A the person who lives failed to take advantage of the vendor's credit regards to 2/15, n/45, yet instead payment the invoice in full at the end of 60 days. By no taking advantage of the cash discount, the buyer shed the tantamount of ____________ annual interest on the quantity of the purchase. 

A. 12.2%

B. 16.2%

C. 18.9%

D. 24.3%

E. 24.5%

97. Sales returns: 

A. Refer to merchandise the customers return to the seller after ~ the sale.

B. Refer come reductions in the marketing price the merchandise marketed to customers.

C. Represent cash discounts.

D. Represent trade discounts.

E. Are not videotaped under the perpetual inventory device until the end of each audit period.

98. All that the following statements concerning sales returns and allowances space true except: 

A. Sales returns and allowances can include a reduction is the marketing price since of damaged merchandise.

B. Sales returns and also allowances carry out not reflect the opportunity of lost future sales.

C. Sales returns and allowances are recorded in a different contra-revenue account.

D. Sales returns and also allowances are seldom disclosed in published financial statements.

E. Sales returns and also allowances space closed to the Income review account.

99. A debit to Sales Returns and also Allowances and a credit transaction to accounts Receivable: 

A. Reflects rise in quantity due native a customer.

B. Recognizes that a customer returned merchandise and/or received an allowance.

C. Requires a debit memorandum to identify the customer's return.

D. Is recorded once a customer takes a discount.

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E. Reflects a to decrease in amount due a supplier.

100. Sales much less sales discounts less sales returns and also allowances equals: