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1. The account that repiesents the cost of inventof weld: A. Sales B) Cost of Groods Sold C. Sales: Returnsand Allowances D. Cash 2. The account that represonts the merchandise a cormpany owns and is holding for resafe, A. Accoturs Paynble B. Cost of Goods Sold C) Inventory D. Purchase Discoumts 3. The credit ferm 2.2/10,N/30 are initerpreted ase A) 2 eash discount if the amount is paid within 10 days, otherwise the full amount is due in 30 days BD. 10% essh discotint if the amount is paid within 2 days, othenwise the full amorant is due in 30 days C. 30% discount if paid within 2 days D. 3096 discount if paid within 10 days 4. If goods are shipped FOB shipping point, which party would be responsible for shipping costs? A. Buyer B. Seller 5. In a consignoriconsignee relationship who is the party that owns the goods? th The consignee B. The consignor 6. A company uses the perpetual inventory system and purchased S1.800 of merchandise on December 5 under the termis 2 10, n30. FOB shipping point. The journal entry necessary to record the Becember 5 purchuse transaction would be: A. Debit Aceounts Receivable and Credit Inventory for $1,800 B. Debit Inventory and Credit Accounts Receivable for 51.800 C. Debit Accounts Payable and Credit Inventory for $1,800 D. Debit Inventory and Credit Accounts Payable for 51.800. 7. On December 7, the company in question B2 retuned $200 worth of merchandise. The entry to record the purchase return an Decetnber 7 would be: A. Debit Accounts Payable and a Credit to Inventory B. Debit Inventory and Credit Accounts Payable C. Debit Cash and Credit Inventory D. Debit Inventory Credit Cash 8. A debit to Sales Returns and Allowances and a credit to Accounts Receivalbie: A. Reflects an increase in amount due from a customer B. Recognizes that a customer returned merchandise to the seller andior received an allowance C. Is recorded when a customer takes a discount B. Nome of the above

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