Exam 4: Reporting and Analyzing Merchandising Operations

On July 22,a company purchased merchandise inventory at a cost of $5,250 with credit terms 2/10,net 30.If the company pays for the purchase on August 7,what would be the appropriate journal entry?

The periodic inventory system uses a temporary account called Purchases.

The following information refers to Annie's Attic and its competitors in the antiques business: Required: Comment on the relative liquidity positions of these companies.

Expenses that support the overall operations of a business and include the expenses relating to accounting,human resource management,and financial management are called:

A company has sales of $1,500,000,sales discounts of $102,000,sales returns and allowances of $123,000,shipping charges of $15,000,sales commissions of $34,000,net income of $263,500,and cost of goods sold of $420,000.What is the gross profit/margin for the period?

Describe the key attributes of inventory for a merchandising company.

On October 1,Robertson Company sold merchandise in the amount of $5,800 to Alberts,with credit terms of 2/10,n/30.The cost of the items sold is $4,000.Robertson uses the periodic inventory system.On October 4,Alberts returns some of the merchandise.The selling price of the merchandise is $500 and the cost of the merchandise returned is $350.The entry or entries that Robertson must make on October 4 is:

A company's quick assets are $147,000 and its current liabilities are $143,000.This company's acid-test ratio is 1.03 (rounded to two decimals).

Following is the year-end adjusted trial balance for Yakima's Sporting Goods for the current year: Prepare the closing entries at December 31 for the current year.

Cost of goods sold represents the value of merchandise sold to customers.

The credit terms 2/10,n/30 are interpreted as:

A debit to Sales Returns and Allowances and a credit to Accounts Receivable:

Gross profit is the same as gross margin.

The acid-test ratio:

Cash sales shorten the operating cycle for a merchandiser; credit purchases lengthen operating cycles.

A period's ___________________ becomes the next period's beginning inventory.

On October 1,Robertson Company sold merchandise in the amount of $5,800 to Alberts,with credit terms of 2/10,n/30.The cost of the items sold is $4,000.Robertson uses the perpetual inventory system.On October 4,Alberts returns some of the merchandise.The selling price of the merchandise is $500 and the cost of the merchandise returned is $350.The entry or entries that Robertson must make on October 4 is:

A company has sales of $2,530,000,sales discounts of $200,000,sales returns and allowances of $323,000,shipping charges of $115,000,sales commissions of $234,000,net income of $863,500,and cost of goods sold of $1,012,000.What is the gross profit/margin ratio?

A single-step income statement includes cost of goods sold as another expense and shows only one subtotal for total expenses.

Mann Company uses the perpetual inventory method.After negotiations with one of its customers concerning the color of the merchandise sold to that customer,Mann allowed the customer to return all of the merchandise and issued a credit memorandum to that customer for $1,000.The merchandise,which had a cost of $750,was restored to inventory.How would the company record this transaction?