Chapter 9.4, Problem 2AYU

If a customer pays with a credit card and the service has been provided, which of the following accounts will be used to record the sales entry for this transaction? A. Cost of Goods Sold, Merchandise Inventory, Sales Revenue B. Sales Revenue, Credit Card Expense, Accounts Receivable C. Accounts Receivable, Merchandise Inventory, Credit Card Expense D. Cost of Goods Sold, Credit Card Expense, Sales Revenue

Which two accounts are used to recognize shipping charges for a buyer, assuming the buyer purchases with cash and the terms are FOB Shipping Point? A. delivery expense, cash B. merchandise inventory, cash C. merchandise inventory, accounts payable D. The buyer does not record anything for shipping since it is FOB Shipping Point.

What are some benefits to a retailer for offering a discount to a customer?

What are the reasons that a company gives trade discounts?Why are trade discounts not recorded in theaccounts like cash discounts?

When a customer (buyer) returns merchandise purchased on credit,what is to be done?

What are the ways that payments by a seller to a customer is done?

Distinguish between cash discounts and trade discounts for purchases. Is the amount of a trade discount on purchased merchandise recorded in the accounts?

When should revenue from the sale of merchandise normally be recognized? A)When the customer takes possession of the merchandise.   B)When the customer takes possession of the merchandise, if sold for cash, or when payment is received, if sold on credit.   C)Either on the date the customer takes possession of the merchandise or on the date on which the customer pays.   D)When the customer pays for the merchandise.

When should a seller view a payment to its customer as a refund of part of the price paid by the customer for theseller’s products or services?