91. The amount videotaped for merchandise inventory has every one of the complying with except: 

A. Acquisition discounts.

You are watching: The amount recorded for merchandise inventory includes all of the following except:

B. Retransforms and allowances.

C. Freight costs phelp by the buyer.

D. Freight costs phelp by the seller.

E. Trade discounts.

92. A agency provides the perpetual inventory device and videotaped the adhering to entry



This enattempt mirrors a: 

A. Purchase of merchandise on crmodify.

B. Return of merchandise.

C. Sale of merchandise on crmodify.

D. Payment of the account payable and also recognition of a 2% cash discount taken.

E. Payment of the account payable and also acknowledgment of a 1% cash discount taken.

93. A delittle bit memorandum is: 

A. Required whenever a journal entry is videotaped.

B. The source document for the purchase of merchandise inventory.

C. Required once a purchase discount is granted.

D. The document a buyer problems to increate the seller of a delittle bit made to the seller's account in the buyer's records.

E. Not vital in a perpetual inventory mechanism.

94. A company purchased $1,800 of merchandise on December 5. On December 7, it changed $200 worth of merchandise. On December 8, it passist the balance in full, taking a 2% discount. The amount of the cash paid on December 8 equals: 

A. $200.

B. $1,564.

C. $1,568.

D. $1,600.

E. $1,800.

95. A company purchased $4,000 worth of merchandise. Transportation costs were a secondary $350. The agency later went back $275 worth of merchandise and paid the invoice within the 2% cash discount duration. The complete amount phelp for this merchandise is: 

A. $3,725.00.

B. $3,925.00.

C. $3,995.00.

D. $4,000.50.

E. $4,075.00.

96. A buyer faicaused take benefit of the vendor's crmodify regards to 2/15, n/45, however rather passist the invoice in full at the finish of 60 days. By not taking advantage of the cash discount, the buyer lost the equivalent of ____________ annual interest on the amount of the purchase. 

A. 12.2%

B. 16.2%

C. 18.9%

D. 24.3%

E. 24.5%

97. Sales returns: 

A. Refer to merchandise that customers go back to the seller after the sale.

B. Refer to reductions in the selling price of merchandise sold to customers.

C. Represent cash discounts.

D. Reexisting trade discounts.

E. Are not recorded under the perpetual inventory device until the end of each accountancy period.

98. All of the following statements about sales returns and allowances are true except: 

A. Sales retransforms and allowances have the right to encompass a reduction is the offering price bereason of damaged merchandise.

B. Sales retransforms and also allowances carry out not reflect the opportunity of shed future sales.

C. Sales returns and also allowances are tape-recorded in a separate contra-revenue account.

D. Sales retransforms and allowances are hardly ever disclosed in published financial statements.

E. Sales retransforms and also allowances are closed to the Income Outline account.

99. A delittle to Sales Returns and also Allowances and a crmodify to Accounts Receivable: 

A. Reflects a boost in amount due from a customer.

B. Recognizes that a customer changed merchandise and/or got an allowance.

C. Requires a delittle bit memorandum to acknowledge the customer's rerotate.

D. Is tape-recorded once a customer takes a discount.

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E. Reflects a decrease in amount due a supplier.

100. Sales much less sales discounts much less sales returns and also allowances equals: