ENT 3451 quiz 2
Study online at https://quizlet.com/_c0zk3r
1. Marathon Sports Gear had net sales revenue of $260,000
$552,000 and Cost of Goods Sold of $292,000. How Net Sales Revenue - COGS
much gross profit did Marathon Sports Gear report? = Gross profit, so
552,000-292,000=260,000
2. Assume Easy Electronics had Net Sales Revenue of 40%
$125,000 and Cost of Goods Sold of $75,000. Average Net sales revenue -
merchandise inventory was $35,000. What is the gross COGS = Gross profit, so
profit percentage for Easy Electronics for this period? 125,000-75,000= 50,000
Gross profit % =
GP/Net Sales Revenue so
50,000/125,000 = 40%
3. The Merchandise Inventory account balance is a $6,000 credit to Mer-
$52,000. A physical count of inventory reveals that chandise Inventory
the actual inventory balance is $46,000. Which of the The inventory shrinkage
following would be included in the adjusting entry? is the difference between
(Assume a perpetual inventory system.) the Merch Account Bal-
ance and the value of the
physical count of invento-
ry, so 52,000 - 46,000 =
6000. The adjusting entry
would be a debit of $6000
to COGS and a credit of
$6000 to Merch inventory.
4. A company that uses the perpetual inventory sys- a debit to Accounts
tem purchases inventory for $62,000 on account, with Payable for $62,000, a
terms of 2/10, n/30. Which of the following is the jour- credit to Merchandise In-
nal entry to record the payment made within 10 days? ventory for $1,240, and a
credit to Cash for $60,760
1/5
, ENT 3451 quiz 2
Study online at https://quizlet.com/_c0zk3r
5. The terms of an invoice are 3/10, n/25. This means that discount of 3 percent is al-
a ________ . lowed if the invoice is paid
within 10 days after the in-
voice date
6. On May 3, TX Manufacturing purchased inventory for $1815
$2000 on account with terms 2/10, n/30. They paid a Net Cost of Inventory Pur-
$100 freight bill. On May 6, they returned $250 of the chased = Initial Purchase
goods to the seller. On May 10, they paid the amount cost - Purchase returns &
due for inventory. What is TX Manufacturing's final cost allowances - purchase dis-
of inventory that they kept? count + freight in
2000 - 250 - (1750 X.02) +
100 = 1815
Discount is taken on the
initial purchase cost less
purchase discounts & al-
lowances. Discount is not
taken on freight.
7. In a perpetual inventory system, the physical count of *All statements are cor-
inventory ________, rect.*
serves as a check of the
perpetual records
establishes the correct
amount of ending inven-
tory for the financial state-
ments
captures inventory shrink-
age not recorded by the
electronic system
8.
2/5
Study online at https://quizlet.com/_c0zk3r
1. Marathon Sports Gear had net sales revenue of $260,000
$552,000 and Cost of Goods Sold of $292,000. How Net Sales Revenue - COGS
much gross profit did Marathon Sports Gear report? = Gross profit, so
552,000-292,000=260,000
2. Assume Easy Electronics had Net Sales Revenue of 40%
$125,000 and Cost of Goods Sold of $75,000. Average Net sales revenue -
merchandise inventory was $35,000. What is the gross COGS = Gross profit, so
profit percentage for Easy Electronics for this period? 125,000-75,000= 50,000
Gross profit % =
GP/Net Sales Revenue so
50,000/125,000 = 40%
3. The Merchandise Inventory account balance is a $6,000 credit to Mer-
$52,000. A physical count of inventory reveals that chandise Inventory
the actual inventory balance is $46,000. Which of the The inventory shrinkage
following would be included in the adjusting entry? is the difference between
(Assume a perpetual inventory system.) the Merch Account Bal-
ance and the value of the
physical count of invento-
ry, so 52,000 - 46,000 =
6000. The adjusting entry
would be a debit of $6000
to COGS and a credit of
$6000 to Merch inventory.
4. A company that uses the perpetual inventory sys- a debit to Accounts
tem purchases inventory for $62,000 on account, with Payable for $62,000, a
terms of 2/10, n/30. Which of the following is the jour- credit to Merchandise In-
nal entry to record the payment made within 10 days? ventory for $1,240, and a
credit to Cash for $60,760
1/5
, ENT 3451 quiz 2
Study online at https://quizlet.com/_c0zk3r
5. The terms of an invoice are 3/10, n/25. This means that discount of 3 percent is al-
a ________ . lowed if the invoice is paid
within 10 days after the in-
voice date
6. On May 3, TX Manufacturing purchased inventory for $1815
$2000 on account with terms 2/10, n/30. They paid a Net Cost of Inventory Pur-
$100 freight bill. On May 6, they returned $250 of the chased = Initial Purchase
goods to the seller. On May 10, they paid the amount cost - Purchase returns &
due for inventory. What is TX Manufacturing's final cost allowances - purchase dis-
of inventory that they kept? count + freight in
2000 - 250 - (1750 X.02) +
100 = 1815
Discount is taken on the
initial purchase cost less
purchase discounts & al-
lowances. Discount is not
taken on freight.
7. In a perpetual inventory system, the physical count of *All statements are cor-
inventory ________, rect.*
serves as a check of the
perpetual records
establishes the correct
amount of ending inven-
tory for the financial state-
ments
captures inventory shrink-
age not recorded by the
electronic system
8.
2/5
