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BBA2201 Columbia Southern Unit V Perpetual Inventory System Questions

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Accounting
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Columbia Southern University
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• Question 1 5 out of 5 points What does "2/10" mean, with respect to "credit terms of 2/10, n/30"? Selected Answer: A discount of 2 percent will be allowed if the invoice is paid within 10 days of the invoice date. Correct Answer: • A discount of 2 percent will be allowed if the invoice is paid within 10 days of the invoice date. Question 2 5 out of 5 points A company that uses the perpetual inventory system purchases inventory for $61,000 on account, with terms of 3/10, n/30. Which of the following is the journal entry to record the payment made within 10 days? Selected Answer: Correct Answer: • A debit to Accounts Payable for $61,000, a credit to Merchandise Inventory for $1,830, and a credit to Cash for $59,170 A debit to Accounts Payable for $61,000, a credit to Merchandise Inventory for $1,830, and a credit to Cash for $59,170 Question 3 5 out of 5 points The term "freight out" refers to __________. Selected Answer: transportation costs on sales Correct Answer: transportation costs on sales • Question 4 5 out of 5 points Which of the following is subtracted from net sales revenue to arrive at gross profit on a multi-step income statement? Selected Answer: Cost of goods sold Correct Answer: Cost of goods sold • Question 5 5 out of 5 points A company using the perpetual inventory system purchased inventory worth $21,000 on account with terms of 3/10, n/30. Defective inventory of $1,000 was returned two days later, and the accounts were appro ...
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