QUESTION 1
Corresponds to CLO 3(b) Delbert Industries purchased inventory of $15,000 on account. The entry to record this purchase will include:
a debit to Inventory and a credit to Accounts Payable.
a debit to Inventory expense and a credit to Accounts Receivable.
a debit to Accounts Payable and a credit to Inventory.
a debit to Inventory and a credit to Cash.
QUESTION 2
Corresponds to CLO 7(b) Gardner Corporation had sales of $2,400 on account on January 9, 2013. Gardner uses the periodic inventory method. The journal entry to record this transaction would include:
a debit to Sales Revenue and a credit to Accounts Receivable.
a debit to Accounts Receivable, a credit to Sales Revenue, a debit to Cost of Goods Sold, and a credit to Inventory.
a debit to Accounts Receivable and a credit to Sales Revenue.
QUESTION 3
Corresponds to CLO 7(c) Rupert Hobby's accounting records show the following for the year ending December 31, 2014: Purchase Discounts...$13,400; Freight-in...$12,000; Purchases...$450,500; Beginning Inventory...$35,600; Ending Inventory...$24,200; Purchase Returns...$15,000. Using the periodic inventory system, what is the cost of goods sold?
QUESTION 4
Corresponds to CLO 9(d) The following financial information is available for Maroon Corporation: Sales revenue...$200,000; Cost of goods sold...$120,000; Operating expenses...$40,000. What is Maroon's gross profit rate, shown as a percentage?