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On July 1, Ferguson Company, Inc

Question 204

Multiple Choice

On July 1, Ferguson Company, Inc. sold merchandise in the amount of $3,700 to Tracey Company, with credit terms of 2/10, n/30. The cost of the items sold is $2,000. Ferguson uses the gross method of accounting for sales and a perpetual inventory system. On July 5, Tracey returns some of the merchandise. The selling price of the merchandise returned is $500 and the cost of the merchandise returned is $350. The entry or entries that Ferguson must make on July 5 to record the return is:


A) On July 1, Ferguson Company, Inc. sold merchandise in the amount of $3,700 to Tracey Company, with credit terms of 2/10, n/30. The cost of the items sold is $2,000. Ferguson uses the gross method of accounting for sales and a perpetual inventory system. On July 5, Tracey returns some of the merchandise. The selling price of the merchandise returned is $500 and the cost of the merchandise returned is $350. The entry or entries that Ferguson must make on July 5 to record the return is: A) B) C) D) E)
B) On July 1, Ferguson Company, Inc. sold merchandise in the amount of $3,700 to Tracey Company, with credit terms of 2/10, n/30. The cost of the items sold is $2,000. Ferguson uses the gross method of accounting for sales and a perpetual inventory system. On July 5, Tracey returns some of the merchandise. The selling price of the merchandise returned is $500 and the cost of the merchandise returned is $350. The entry or entries that Ferguson must make on July 5 to record the return is: A) B) C) D) E)
C) On July 1, Ferguson Company, Inc. sold merchandise in the amount of $3,700 to Tracey Company, with credit terms of 2/10, n/30. The cost of the items sold is $2,000. Ferguson uses the gross method of accounting for sales and a perpetual inventory system. On July 5, Tracey returns some of the merchandise. The selling price of the merchandise returned is $500 and the cost of the merchandise returned is $350. The entry or entries that Ferguson must make on July 5 to record the return is: A) B) C) D) E)
D) On July 1, Ferguson Company, Inc. sold merchandise in the amount of $3,700 to Tracey Company, with credit terms of 2/10, n/30. The cost of the items sold is $2,000. Ferguson uses the gross method of accounting for sales and a perpetual inventory system. On July 5, Tracey returns some of the merchandise. The selling price of the merchandise returned is $500 and the cost of the merchandise returned is $350. The entry or entries that Ferguson must make on July 5 to record the return is: A) B) C) D) E)
E) On July 1, Ferguson Company, Inc. sold merchandise in the amount of $3,700 to Tracey Company, with credit terms of 2/10, n/30. The cost of the items sold is $2,000. Ferguson uses the gross method of accounting for sales and a perpetual inventory system. On July 5, Tracey returns some of the merchandise. The selling price of the merchandise returned is $500 and the cost of the merchandise returned is $350. The entry or entries that Ferguson must make on July 5 to record the return is: A) B) C) D) E)

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