1.CMP Inc. maintains perpetual inventory records. During January, the company made purchasese of $40,000 and sold goods with a cost of $42,000 for $104,000. Cost of goods sold for the month is:
A)$62,000
B)$40,000
C)$42,000
D)$64,000
2.The Merchandise Inventory account for a perpetual inventory system is used in each of the following except the entry to record:
A)payment of freigh on goods sold
B)payment within the discount period
C)the return of goods purchased
D)goods purchased on account
3.The following information is available for Knot Company at December 31, 2008: beginning inventory $80,000; ending inventory $120,000; cost of goods sold $900,000; and sales $1,200,000. Knot's inventory turnover in 2008 is:
A)11.3 times
B)7.5 times
C)9 times
D)12 times