Purchases
If the credit term is expressed as "3/15, n/30", what does that mean?
3% off if paid within 15 days.
Net paid within 30 days
What are the two new accounts used for sales returns and allowances?
Estimated Returns Inventory
Refunds Payable
This term is the loss of inventory that occurs because of theft or damage
Inventory Shrinkage
Which merchandiser financial statement is the only statement that differs significantly from a service business?
Income Statement
What is the capital of Missouri?
Jefferson City
Which inventory systems requires businesses to obtain a physical count of inventory to determine the quantities on hand?
Periodic Inventory System
What account is used when the payment is collected outside of the discount period to account for the buyer's loss off discount?
Sales Discounts Forfeited
Even in a perpetual inventory system a business must do this at least 1 time a year.
Take a physical count of inventory
What is the gross profit percentage formula?
Gross Profit Percentage= Gross Profit/ Net Rales Revenue
What does the term love mean in tennis?
It is used to describe a lack of score in points (zero)
Suppose a business receives $35,000 of goods on June 3 and makes payment on the same date. What is the entry?
June 3 Merchandise Inventory 35,000
Cash 35,000
Suppose a business sold two tablets for cash on June 19. The tablets had a price of $500 each and a cost of $350 each. What does the entry look like?
June 19 Cash 1000
Sales Revenue 1000
COGS 700
Merchandise Inv. 700
Assume Smart Touch Learning estimates that $4,000 of sales revenue and $1,600 of merchandise inventory will be returned. What does the entry look like?
Sales Revenue 4,000
Refunds Payable 4,000
Estimated Returns Inventory 1,600
COGS 1,600
Sales Discount Forfeited is what type of account? (Assets, Liability, Expense, Revenue, Etc.)
Revenue
Who is the MLB career home run leader?
Barry Bonds
This term means the buyer takes ownership of the good when the goods leave the seller's place of business.
FOB Shipping Point
This term means the buyer takes ownership of the goods at the delivery destination.
FOB Destination
In order name the accounts that we zero out when closing
1. Revenue accounts
2. Expense accounts
3. Income Summary
4. Dividends
If net sales are $19,167 and cost of merchandise sold is %12,199. What is the gross profit percentage?
(19,167-12,199)/ 19,167= 36.4%
When is the first date of summer (the summer solstice) in 2022?
June 21
If you previously purchased $28,000 worth of merchandise on account with credit terms "3/15, n/30" on June 3rd. Then pay off the balance on June 14. What is the journal entry?
June 14 Accounts Payable 28,000
Cash 27,160
Merchandise Inv. 840
Smart Touch Learning sold $7,500 worth of tablets on account. The goods cost $5,250. The credit terms are "2/10, n/30". What would the entry look like?
Accounts Receivable 7,350
Sales Revenue 7,350
COGS 5,250
Merchandise Inv. 5,250
If a business has an unadjusted inventory balance of $31,530. However, after a physical count they realize they only have $30,00 on hand. What is the adjusting entry for this inventory shortage?
COGS 1,530
Merch Inv. 1,530
Name 3 of the major subtotals of a multi-step income statement?
Gross Profit
Operating Income
Other Income/ Expenses
Income Tax Expense
What song spent the longest time as #1 on the Billboard Hot 100?
Old Town Road, Lil Nas X