1a) Rodriguez Companypurchased merchandise from Emmett Company with freight terms of
FOB shipping point. The freight costswill be paid by the
a. shipping company.
b. buyer (RodriguezCompany)
c. seller (Emmett Company)
d. buyer and theseller.
b) Gee Companypurchased merchandise inventory with an invoice price of $7,000 andcredit terms of 2/10, n/30. What is the net cost of the goods ifGee Company pays within the
discount period?
a. | $6,300 |
b. | $6,440 |
c. | $6,860 |
d. | $7,000 |
C) A credit sale of$3,600 is made on July 15, terms 2/10, n/30, on which a return of$100 is
granted on July 18. What amount isreceived as payment in full on July 24?
a. | $3,600 |
b. | $3,528 |
c. | $3,500 |
d | $3,430 |
D) The Sales Returnsand Allowances account is classified as a(n)
a. asset account.
b. contra assetaccount.
c. expense account.
d. contra revenue account.
