Purchases
What is the capital of Missouri?
Jefferson City
What is the difference between a sales return and a sales allowance?
A sales return involves an adjustment to Inventory, but a sales allowance does not.
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
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
Which inventory systems requires businesses to obtain a physical count of inventory to determine the quantities on hand?
Periodic Inventory System
What does the term love mean in tennis?
It is used to describe a lack of score in points (zero)
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 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
A return of goods purchased on credit (on account) is recorded by the purchasing company as a debit to what account?
Accounts Payable
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
Who is the MLB career home run leader?
Barry Bonds
Sales Discount Forfeited is what type of account? (Assets, Liability, Expense, Revenue, Etc.)
Revenue
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
A company that uses the perpetual inventory method purchases inventory of $1,000 on account with terms of 2/10, n/30. Defective inventory of $200 is returned 2 days later and the accounts are appropriately adjusted. If the company paid the vendor within 10 days, what would their entry be?
Accounts Payable 800
Cash 784
Merch Inv 16
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
When is the first day of summer (the summer solstice)?
June 20th, 21st, or 22nd depending on the year
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%
A company that uses the perpetual inventory method purchases inventory of $1,000 on account with terms of 2/10, n/30. What would the entry look like to record the payment if it is made within 10 days?
Accounts Payable 1,000
Cash 980
Merchandise Inv. 20
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 $30,000 on hand. What is the adjusting entry for this inventory shrinkage?
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? There is a current tie between two songs.
Old Town Road, Lil Nas X
Bar Song By Shaboozey