When does the cost of inventory become an expense?a. When cash is collected from the customerb. When inventory is delivered to a customerc. When payment is made to the supplierd. When inventory is purchased from the supplier

Q: When a customer returns goods, the merchandiser will:

A: Inventory:   Inventory refers to the raw materials, work-in process, and the finished goods…

Q: Describe each transaction. b. What was the invoice amount of the merchandise that was returned?

A: Accounts receivable:  It is a current asset of an organization. It is the amount due from customers…

Q: The return of goods by a customer ( Sales Return ) should be credited in the ledger account of ?

A: Sales return in accounting is used to refer the goods or item once purchased and returned to the…

Q: Sales are recognized as earned revenue when a)Cash is received from credit sales b)An order is…

A: The revenue recognition is one among the various generally accepted accounting principles (GAAP).…

Q: Where should goods in transit that where recently purchased f.o.b. destination be included on the…

A: FOB destination: When the seller bears the freight charges for the delivery of merchandise from the…

Q: What is the account title used for revenue when goods are delivered to customers?

A: Account title: An account title is a unique name assigned to an account in an accounting system. An…

Q: The Ledger related to expenses is entered in which one of the ledger? Sales Ledger Purchase return…

A: Expenses are not recorded in a specific ledger.

Q: Expenses related to office maintenance will be called as a. Sales Discount expense b. Selling…

A: (A) Sales Discount Expense: It is expense given to buyer of goods to incentivize his purchases. It…

Q: Which of the following activities is not a component of the operating cycle? a.

A: operating cycle refers to the time the entity takes to buy the goods, process and sell those goods…

Q: Using a perpetual inventory system, the sale of inventory on account would be recorded as a. Debit…

A: Perpetual inventory system: The method or system of maintaining, recording, and adjusting the…

Q: It is used to show who is responsible for paying for shipping and when the title of the goods passes…

A: Payment term used to show who is responsible for paying for shipping and when the title of the goods…

Q: Which of the following statements about merchandisingactivities is true? (More than one answer may…

A: Merchandising activities means activities of purchase and sale of goods that are ready for sale.…

Q: he shipments from branch account is added to the branch's purchases account in determining branch's…

A: solution concept The shipments to branch account from head office forms the part of the cost of…

Q: Which account does a merchandiser use that a service company does not use? a. Cost of Goods Sold b.…

A:

Q: The entry to record the return of merchandise from a customer would include a  debit to Sales…

A: Sale return means when goods sold to customer returned back because of any reson. When we sold goods…

Q: his account is used to recognize the cost of an inventory that is sold as expens

A: Solution: When inventory is sold, then this cost should be transferred to Cost of goods sold…

Q: Which accounting concept requires that any goods taken from inventory by the owner are treated as…

A: The business entity concept states that the company must separate transactions of the business from…

Q: a) merchandise inventory,  b) accounts payable, c)   cost of goods sold,  d) customer refunds…

A:

Q: The operating cycle is best described as the time between a.the formation of the company and the…

A: The amount of time a corporation spends between spending money on operational activities and…

Q: Income Summary is closed to what account Income accounts O Expense Accounts Owner's equity account O…

A: all the incomes and expenses are closed by transferring the accounts to the income statement. The…

Q: Assume that a perpetual inventory system using the NET METHOD is in use. Which of the following…

A: Step 1: As per the net method of perpetual inventory system, when a customer will return the goods…

Q: For a company like Best Buy, what does the balance of Cost of Goods Sold in the income statement…

A:

Q: Describe a situation where a merchant would use the specific identification method for recording…

A: A merchant would use specific identification method when the individual items in inventory can be…

Q: What inventory accounts are used by a manufacturer? In what financial statement will appear?

A: An inventory account or merchandise inventory account is an account to record the inventory…

Q: a debit to Accounts Payable and a credit to Merchand

A: A perpetual inventory system is an inventory management approach that uses an inventory management…

Q: which statement is true about the operating cycle a. the time needed from acquiring inventory from…

A: The operating cycle is the average period of time or days required for a business to make an initial…

Q: What are expenses like sales salaries expense, advertising expense, etc. called that are incurred…

A: Under the functional expense classification expenses are aggregated and reported by activities for…

Q: Goods or products a company owns and expects to sell to its customers A) Sales B Merchandise…

A: Answer -  Merchandise Inventory -  Merchandise inventory means the value of goods in stock, it can…

Q: credit terms are terms for a. when the payments for merchandise are to be made b. when inventory is…

A: Credit terms refers to the agreement made between the seller and the buyer which defines the timing…

Q: 1 Which of the following statements about perpetual merchandising activities is true? (Identify the…

A: Hi student Since there are multiple question, we will answer only first question. If you want…

Q: What accounts are used to recognize a retailer’s purchase from a manufacturer on credit?A. accounts…

A: Purchase of goods on credit means inventory has been purchased but payment has not been made yet.…

Q: Which of the following would appear on the balance sheet of a merchandiser but not on the balance…

A: The goods that a wholesaler, retailer or distributor obtains from manufacturers that are intended…

Q: Which account is not classified as selling expenses? O A. Sales Discounts O B. Transportation out O…

A: Answer) The correct answer in the given question is: (B) Transportation Out   Selling expenses are…

Q: It is used to who is responsible for paying shipping and when the title of the goods passes from…

A: The goods and services are usually exchanged between two parties. One is seller and the other is…

Q: What does it mean that product costs fl ow through inventory on their way to the income statement?

A: Product costs: The costs incurred to acquire the merchandise, ship the stock, prepare the…

Q: Which of the following is an example of a contra revenue account?A. salesB. merchandise inventoryC.…

A: This account book transaction would be linked to certain associated accounts of a different sort.…

Q: Merchandise inventory is O Reported on the balance sheet under plant and equipment O Products a…

A: Income statement and balance sheet are the financial statements of a company, prepared at the end of…

Q: The journal entry to record the purchase of inventory on account is:

A: The journal entry to record the purchase of inventory on account is: Answer - A Debit…

Q: Selling Expenses Interest Revenue Net Sales Revenue Cost of Goods Sold Administrative Expenses

A: Net sales revenue = $113,500 Cost of goods sold = $85,000 Gross profit = Net sales revenue - Cost of…

Q: Identify each of the following items relating to sections of an income statement as Revenue from…

A: Income Statement: The income statement reports the financial performance in terms of profit or loss…

Q: andise Inventory becomes part of Cost of Goods Sold when an entity sells the inventory pays the…

A: Solution: Merchandise Inventory becomes part of Cost of Goods Sold when an entity "sells the…

Q: Cost of goods sold is given by:

A: Cost of goods sold:   Cost of goods sold is the total of all the expenses incurred by a company to…