exam 3

Question 1

selling merchandise to customer

Answer 1

debit accounts receivable or cash
credit sales revenue

Question 2

sale of product to a customer

Answer 2

debit COGS
credit inventory

Question 3

FOB destination

Answer 3

debit freight-out
credit cash or accounts payable

Question 4

sales returns and allowances with customers

Answer 4

debit sales returns and allowances
credit cash or accounts receivable

Question 5

sales returns

Answer 5

debit inventory
credit COGS

Question 6

receiving payment within discount period

Answer 6

debit cash and sales discount
credit accounts receivable

Question 7

receiving payment after the discount period

Answer 7

debit cash
credit accounts receivable

Question 8

purchasing of products

Answer 8

debit inventory
credit accounts payable

Question 9

FOB shipping point

Answer 9

debit inventory
credit cash or accounts payable

Question 10

purchase returns and allowances

Answer 10

debit cash or accounts payable
credit inventory

Question 11

making a payment within the discount period

Answer 11

debit accounts payable
credit inventory and cash

Question 12

making a payment after the discount period

Answer 12

debit accounts payable
credit cash

Question 13

sales discount

Answer 13

contra-revenue
income statement

Question 14

sales returns/sales allowances

Answer 14

contra-revenue
income statement

Question 15

net sales

Answer 15

sales revenues - discounts - returns

Question 16

freight-out

Answer 16

operating expense
income statement