When the transportation charges are paid by the seller, merchandise is shipped a. FOB destination b. FOB shipping c. FOB carrier d. Prepaid
Q: f NetSolutions (the buyer) purchases merchandise from a wholesale company or vendor (the seller) and…
A: Solution: When goods are purchased on terms of FOB Shipping Point, Buyer of goods is responsible for…
Q: Mr. Mohammed use perpetual inventory system makes the following journal entry in his business Debit…
A: Merchadise inventory is debited and Accounts payable is credited where inventory is purchased on…
Q: When the seller advances the transportation costs and the terms of sale are FOB shipping point, the…
A: FOB shipping point - Under FOB Shipping term of sale the purchaser have to bear the cost of…
Q: If title to merchandise purchases passes to the buyer when the goods are delivered to the buyer, the…
A: FOB shipping point sale: FOB shipping point sale: When the goods are shipped to the buyer, the title…
Q: FOB destination of a Merchandise Business means: a. Goods are placed free on board to the buyer's…
A: Free on broad (FOB) is a term indicating whether the seller or the buyer will bear the loss and…
Q: Goods in transit are recorded as closing inventory of the buyer when
A: Goods in transit is the middle process where the goods are in between the buyer and the seller. it…
Q: If title to merchandise purchases passes to the buyer when the goods are shipped from the seller,…
A: Free on Board is a trade term used to indicate whether the buyer or the seller is liable for goods…
Q: Which of the following journal entries is recording merchandise inventory leaving the warehouse on a…
A: A seller can sell goods to its customer on cash and credit basis. if its is a Cash sale then there…
Q: The “Shipment to Branch” account is added to the home office’s purchase account in determining home…
A: While determining the cost of goods sold, the shipment would be added to the office purchase.…
Q: FOB destination of a Merchandise Business means: a. Seller is not responsible for the goods b. Buyer…
A: Whenever business sells goods to the customer, then there can be two type of terms. One is FOB…
Q: If title to merchandise purchases passes to the buyer when the goods are shipped from the seller,…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
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: When purchases of merchandise are made on account with a perpetual inventory system, the transaction…
A: Perpetual inventory system: It is a method of inventory management that records real time…
Q: Consignments refer to that specialized marketing method whereby the Consignee a. holds title to the…
A: Solution: In the consignments model, consignor will remain owner of goods and consignee takes…
Q: When merchandise that was sold is returned, a credit to sales returns and allowances is made by the…
A: As per perpetual inventory system, inventory records are updated after every transaction. When…
Q: The home office ships merchandise to its branch above cost. What journal entry should the home…
A: The home office ships merchandise to its branch above cost. Following Journal entry shall me record…
Q: If the sale includes the seller paying the freight costs and assuming the responsibility for…
A: FOB shipping point sale: When the goods are shipped to the buyer, the title is transferred to the…
Q: Which two accounts are used to recognize shipping charges for a buyer, assuming the buyerpurchases…
A: The term "free on board" (FOB) relates to whether the vendor or customer is liable for damaged or…
Q: b. Debits: Accounts Receivable, Cost of Goods Sold; credits: Sales options correctly expresses the…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: Amex Stores should include which of the following items in its inventory at the statement of…
A: solution concept we should always consider the following points while valuing the inventory goods…
Q: If a manufacturer ships merchandise to a retailer on consignment, the unsold merchandise should be…
A: Definition: Goods in transit: Goods in transit can be described as the inventories which are…
Q: 6. Freight costs incurred by a seller on outgoing merchandise are debited to a. the Cost of Goods…
A: Disclaimer: “Since you have asked multiple question, we will solve the first question for you. If…
Q: The following accounts are included in the ledger of David Company: Advertising expense Freight-in…
A: Cost of goods sold = Beginning inventory + Net purchases + Direct expenses - Ending inventory
Q: Merchandise is: A. the same as inventory. B. an asset. C. the same as supplies. D. Both A…
A: Assets: These are the resources owned and controlled by business and used to produce benefits for…
Q: The journal entry to record a merchandise sold to customers on credit under periodic inventory…
A: Periodic inventory system is an inventory system in which all purchase and sale transactions related…
Q: Goods in transit are recorded as closing inventory of the Buyer when a. The goods are purchased on…
A: The ending inventory includes the goods that are owned by the business at year end.
Q: Goods in transit are included in a purchaser's inventory: Multiple Choice O At any time during…
A: The sales invoice includes the shipping costs and details as FOB shipping, FOB destination.
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: .In consignment sales, what is the proper treatment of the consignment-related transportation cost…
A: Consignment means where consignor send goods to consignee to be sold by later on the behalf of…
Q: Requirement a. What are the accounting requirements for a correct sales cutoff? A. A shipment…
A: Revenue shall be recognition according to accounting standards. Following is the condition to…
Q: A bill or a statement issued by the seller to the buyer giving details of goods sold. a. chart of…
A: The seller issues a bill containing all the details about the sales to the buyer.
Q: 1. Credit Terms a. The cost of the merchandise inventory that the business has sold to customers. 2.…
A: FOB destination point vs FOB shipping point : In FOB destination point, the seller transfers the…
Q: Assume the perpetual inventory; system is used unless stated otherwise. Round all numbers to the…
A: Cost accounting is the accounting of all the costs incurred for manufacturing of product and…
Q: If the buyer is to pay the freight costs of delivering merchandise, delivery terms are stated as Da.…
A: Cost of goods sold: It refers to the overall cost incurred by a company for the production of the…
Q: When goods are shipped FOB destination and the seller pays the freight charges, the buyer A.…
A: Transportation expense is a type of travel expense that refers specifically to the cost of…
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: True or False 1. The seller nay prepay the transportation cost even though the terms are FOB…
A: FOB Shipping point refers to the transfer of risk in goods at the place of shipping point from…
Q: 1. e buyer is to pay the transportation costs of delivering merchandise, delivery terms are stated…
A: 1)Option A is correct FOB shipping point Means free on board at shipping point; buyer incurs all…
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: shipments to branch
A: Shipments to branch account is subtracted from the beginning stock and purchases to calculate home…
Q: When inventory is shipped from the seller to the buyer with shipping terms of FOB destination: O A.…
A: The question is multiple choice question. Required Choose the Correct Option.
Q: Enter the letter for each term in the blank space beside the definition that it most closely…
A:
Q: The "dual nature of merchandise transactions" as described in this chapter means every business…
A: Solution Merchandising company means the company which is not engage in production and are rather…
Q: When merchandise is bought for resale, which of the following accounts would be increased? A.…
A: Merchandise: It can be defined as any type of manufactured goods which may include commercial or…
Q: Freight on Board (FOB) shipping point requires that the seller pays the shipping cost.. True or…
A: Shipping cost is the cost associated with goods when they are shipped to the buyer from the seller.…
Q: If the buyer is to pay the transportation costs of delivering the merchandise, delivery terms are…
A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…
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- For each of the following accounts, identify whether the normal balance is a debit or a credit. Also specify whether the account is a contra account. a. Sales Returns and Allowances b. Merchandise Inventory c. Sales d. d Freight In e. Purchases Returns and Allowances f. Sales Tax Payable g. PurchasesWhat accounts are used to recognize a retailers purchase from a manufacturer on credit? A. accounts receivable, merchandise inventory B. accounts payable, merchandise inventory C. accounts payable, cash D. sales, accounts receivableWhich of the following accounts are used when recording the sales entry of a sale on credit? A. merchandise inventory, cash B. accounts receivable, merchandise inventory C. accounts receivable, sales D. sales, cost of goods sold
- Which of the following accounts are used when recording a purchase? A. cash, merchandise inventory B. accounts payable, merchandise inventory C. A or B D. cash, accounts payableMerchandise Accounting Merchandise Inventory Raw materials Work in process Finished goods Gross profit Net sales Sales revenue Cost of goods available for sale Cost of goods sold Perpetual system Periodic system Transportation-In Purchases FOB destination point FOB shipping point Gross profit ratio An adjunct account used to record freight costs paid by the buyer. A system in which the Inventory account is increased at the time of each purchase and decreased at the time of each sale. Terms that require the seller to pay for the cost of shipping the merchandise to the buyer. Terms that require the buyer to pay for the shipping costs. A system in which the Inventory account is updated only at the end of the period. Beginning inventory plus cost of goods purchased. An account used in a periodic inventory system to record acquisitions of merchandise. Sales revenue less sales returns and allowances and sales discounts. Cost of goods available for sale minus ending inventory. Gross profit divided by net sales. Net sales less cost of goods sold. The cost of unfinished products in a manufacturing company. The account wholesalers and retailers use to report inventory held for sale. The inventory of a manufacturer before the addition of any direct labor or manufacturing overhead. A manufacturers inventory that is complete and ready for sale. A representation of the inflow of assets from the sale of a product.For each of the following statements, fill in the blanks with the correct account names. A. A retailer purchases merchandise on credit. The retailer would recognize this transaction by debiting _____ and crediting _______. B. A retailer pays for purchased merchandise within the discount window. The retailer would recognize this transaction by debiting ________ and crediting _________ and ________. C. A customer returns merchandise to the retailer and receives a full refund. The retailer would recognize this transaction by debiting _________ and crediting _________ if the customer had not yet paid on their account. D. A customer pays for purchased merchandise within the discount window. The retailer would recognize this transaction by debiting ________ and _______, and crediting _________.
- Identify each of the following items relating to sections of an income statement as Revenue from Sales (S), Cost of Goods Sold (CGS), Selling Expenses (SE), General Expenses (GE), Other Income (OI), or Other Expenses (OE). a. Utilities Expense b. Advertising Expense c. Purchases Discounts d. Sales Returns and Allowances e. Interest Income f. Freight In g. Depreciation Expense, Equipment h. Interest Expense i. Rent Expense j. SalesFOB destination of a Merchandise Business means: a. Goods are placed free on board to the buyer's place of business. b. Seller is responsible for paying the freight charges. c. Buyer is responsible for paying the freight charges. d. Seller ships the goods to buyer destination without charge to the buyerIf title to merchandise purchases passes to the buyer when the goods are delivered to the buyer, the terms are a. consigned b. n/30 c. FOB shipping point d. FOB destination
- Which of the following will be called as an expense of a Merchandise business? a. Sale of Merchandise inventory b. Trade discount c. Cost of goods sold d. Loan from bank MuscatIt is used to show who is responsible for paying for shipping and when the title of the goods passes from seller to buyer in a merchandise business: a. Payment term b. Discount term c. Credit term d. Shipping termf merchandise sold on account is returned to the seller, the seller may inform the customer of the details by issuing a
