Exam 6: The Operating Cycle and Merchandising Operations

Good internal control dictates that key employees be rotated among different jobs.

Which of the following documents would be prepared (by a buyer of goods)after the others?

Which of the following companies would be most likely to use a computerized perpetual inventory system?

Assuming that net cost of purchases was $116,000 during the year and that ending merchandise inventory was $2,000 less than the beginning merchandise inventory of $25,000,how much was cost of goods sold?

Under the periodic inventory system,cost of goods sold is treated as an account.

The perpetual inventory system has traditionally been used most commonly by companies that sell

A formal request for a purchase from the requesting department of a business is known as a purchase order.

Assume that Beckham Corporation had credit card sales of $7,500 for the month ended December 31.Prepare one journal entry to record these sales assuming that all of the credit card companies charge Beckham a 2 percent discount fee.(Omit date.)Round to the nearest whole dollar.

Rogers Company sold merchandise worth $1,600 on credit,terms n/15.The merchandise sold had cost $1,100.What is the required journal entry to record the transaction and to transfer the cost of merchandise inventory to cost of goods sold under the periodic inventory system?

An advantage of using the periodic inventory system is that it requires less recordkeeping than the perpetual inventory system.

Match each definition with the correct term below. -Physical controls

The collection of a $2,000 account beyond the 2 percent discount period would result in a(n)

Use this information to answer the following question. Alfalfa Company experienced the following events during the period: The entry to record transaction 1 would include an increase in

The calculation of goods available for sale during the year is affected by the previous year's ending merchandise inventory.

Use this information to answer the following question. The selected accounts and balances for Pawnee Market appear as follows: Advertising Expense 28,000 Common Stock 200,000 Dividends 42,000 Freight-In 14,000 Freight-Out Expense 20,000 Interest Income 48,000 Merchandise Inventory (Jan. 1) 140,000 Merchandise Inventory (Dec. 31) 112,000 Purchases 120,000 Purchases Returns and Allowances 8,000 Rent Expense 18,000 Retained Earnings 80,000 Sales 300,000 Sales Returns and Allowances 38,000 Wages Expense 64,000 The amount of net sales on the income statement would be

Prepare journal entries without explanations for the merchandising transactions listed below for Naveh Corporation.Assume use of the periodic inventory system.

Use this information to answer the following question. In addition,beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000. Cost of goods sold for the period was

On May 13,Wagoner Company purchased merchandize worth $2,400 on credit,terms 2/10,n/30.The amount was paid on May 20.What is the required journal entry to record the payment under the periodic inventory system?

Effective internal control requires a department to purchase supplies through a formal purchasing process.

The amount of goods available for sale during the year depends on the amounts of