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1)From the following details of a merchandiser, calculate the cost of goods sold. (Assume the merchandiser uses the periodic inventory system.)

Net Sales Revenue

$ 205,000

Purchases	90,000
Purchase Returns and Allowances	1,700
Purchase Discounts	1,250
Freight In	1,450
Beginning Merchandise Inventory	61,000
Ending Merchandise Inventory	38,000

A.$ 111,500

B.$ 50,500

C.$ 110,050

D.$ 64,050

2) A petty cash fund was established with a $ 525balance. It currently has cash of $ 85 and petty cash tickets as shown below:

Travel expense

$ 100

Office supplies expense	310
Equipment rental expense	30

Which of the following would be the journal entry to replenish the Petty Cash account?

A.debit various expenses$ 440;credit Petty Cash $ 440

B.debit various expenses$ 440;credit Cash $ 440

C.debit Cash$ 85;credit various expenses $ 85

D.credit Petty Cash $ 440; debit Cash $ 440

3)Which of the following should the purchasing agent NOT be able to do?

A.Negotiate prices with suppliers

B.Prepare the purchase order

C.Contact the supplier of the goods

D.Receive the goods

4)Which of the following is the last step in the daily control over cash receipts by mail?

A.The controller compares the records of the day's bank deposit amount from the treasurer and the debit to cash from the accounting department.

B.A mailroom employee sends all customer checks to the treasurer who has the cashier make the bank deposit.

C.The accounting department prepares journal entries to cash and the customers' accounts.

D.A mailroom clerk opens the mail and sends the remittance advices to the accounting department.

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