Exam 6: Accounting for Retailing

The system of accounting for inventory that involves keeping a current and continuous record of the movement in each item of inventory is known as the ____________ inventory system.

Jan sold goods to John for $3300 including GST. John paid his account within the discount period and received a settlement discount of 2%. Using the gross method, which of the following is the correct entry in Jan's books to record the payment by John?

When interim accounting reports are prepared on a worksheet and the periodic method of accounting for inventory is used, closing inventory is:

Adelaide sold goods to Perth on credit at a price of $4400 including GST. What is the entry to record this transaction in Adelaide's books under either the perpetual or periodic inventory system? (Ignore the transfer to COS required under the perpetual system.)

Which of the following is not true of the periodic inventory system?

The process of counting and pricing all the inventory on hand on a particular date is known as:

What is the correct layout for a retailer's income statement?

When goods are returned by a customer or the price is adjusted, GST legislation requires the retailer to issue the customer with _________________for all amounts totalling more than $50.

Under the perpetual inventory system an inventory variance can be calculated as the difference between:

GST is credited to the GST collections account when a sale occurs. If goods are returned or a discount allowed the _______________ account must be debited with an adjustment for GST.

Using the periodic approach to record inventory, inventory at start, plus purchases, minus inventory at end as valued in a physical stocktake, is assumed to equal:

What is the entry to record the return of goods to a supplier under the perpetual inventory system, including GST?

B sold goods to A on credit for $2 000. What is the correct accounting entry to record this transaction in B's books? Ignore GST and cost of sales.

Under the periodic inventory system an income statement cannot be prepared without a/an ____________. It is only after a/an ___________ that the cost of sales can be estimated.

The account that measures the expense of the inventory sold during the period is called:

What is the formula for calculating the gross profit ratio?

What is the formula for calculating the gross profit ratio?

Goods held for sale by a retailer in the normal course of business are known as:

Which statement relating to inventory is not correct?

Under the perpetual inventory system, what is the entry for the credit purchase of 10 electric guitars at $250 per guitar plus GST of $25 each?