ACCY 201 EXAM #2 REVIEW QUESTIONS
1. At what point does ownership change hands when a good is purchased
under FOB shipping point?: when the seller delivers the good to the shipper
2. Who pays for shipping costs when the shipping terms are FOB destination?-
: Seller
3. Determine Gross Profit (gross margin)
- sales: $250
- COGS: $150
- Operating Expenses $250: (sales - COGS)= Gross
Profit 250-150= 100
4. A good is purchased at a price of $1000 under terms 2/10, n/30. What is
the purchase price recorded in the journal at?: $1000 (record purchases at price)
5. We sold goods at a price of $500 on account, terms 2/10 n/30. We originally
purchased the goods for $200. Which of the following journal entries would be
to record the sale of the goods?: DR: Accounts Receivable $500
CR: Sales $500
6. We sold goods at a price of $500 on account, terms 2/10 n/30. We originally
purchased the goods for $200. Which of the following journal entries would be
to record the cost of the goods that were sold?: DR: COGS $200
CR: Inventory $200
7. The buyer in the previous transaction determined that $50 of the purchased
goods were damaged. This inventory was returned. We originally purchased
these goods for $20. The related journal entry would include a debit which of
the following. (seller side): Sales Returns and Allowances $50, Inventory $20
8. The buyer in the previous transaction determined that $50 of the purchased
goods were damaged. This inventory was returned. We originally purchased
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, these goods for $20. The related journal entry would include a credit which of
the following (seller side)?: -------- D??
9. The buyer from the previous question paid their remaining balance on ac-
count within the discount period. What is the journey entry (from seller's
side).: C??
10. In a period of rising prices, which of the following inventory methods would
provide the highest COGS?: LIFO
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1. At what point does ownership change hands when a good is purchased
under FOB shipping point?: when the seller delivers the good to the shipper
2. Who pays for shipping costs when the shipping terms are FOB destination?-
: Seller
3. Determine Gross Profit (gross margin)
- sales: $250
- COGS: $150
- Operating Expenses $250: (sales - COGS)= Gross
Profit 250-150= 100
4. A good is purchased at a price of $1000 under terms 2/10, n/30. What is
the purchase price recorded in the journal at?: $1000 (record purchases at price)
5. We sold goods at a price of $500 on account, terms 2/10 n/30. We originally
purchased the goods for $200. Which of the following journal entries would be
to record the sale of the goods?: DR: Accounts Receivable $500
CR: Sales $500
6. We sold goods at a price of $500 on account, terms 2/10 n/30. We originally
purchased the goods for $200. Which of the following journal entries would be
to record the cost of the goods that were sold?: DR: COGS $200
CR: Inventory $200
7. The buyer in the previous transaction determined that $50 of the purchased
goods were damaged. This inventory was returned. We originally purchased
these goods for $20. The related journal entry would include a debit which of
the following. (seller side): Sales Returns and Allowances $50, Inventory $20
8. The buyer in the previous transaction determined that $50 of the purchased
goods were damaged. This inventory was returned. We originally purchased
1/8
, these goods for $20. The related journal entry would include a credit which of
the following (seller side)?: -------- D??
9. The buyer from the previous question paid their remaining balance on ac-
count within the discount period. What is the journey entry (from seller's
side).: C??
10. In a period of rising prices, which of the following inventory methods would
provide the highest COGS?: LIFO
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