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Chapter 14 PROBLEM 14-31 MULTIPLE CHOICE 1. A sales invoice included the terms 1/10, n/eom, FOB shipping p granted prior to payment, that the paid within the discount period information: merchandise price, P4,000 transportation, P300, point. Assuming that a credit for merchandise returned of P600 is transportation is prepaid by the seller, and that the invoice is is the amount of cash received by the seller? a P3,366 b. P3,400 c. 93.666 d. P3,950 Merchandise subject to terms 1/10, n/30, FOB shipping point, is sold on account to P15,000. The seller paid transportation costs of 1,000 and issued a credit memorandum for 2. a customer for P5,000 prior to payment. What is the amount of the a. P160 c. P140 d. P100 b. P150 3. Robert sold merchandise on account, terms 20,15,2/10,n/30: FOB destination, Collect. The entry to record the transaction includes a. Debit Accounts receivable at list price b. Crdit Accounts payable at invoice price d. Debit Accounts receivable at invoice price Credit cash for the freight paid 4. Berta purchase merchandise on account, terms, 4/20. 2/30, n/45: FOB destination, Prepaid. If the account was paid on the 23h day the cash payment is computed as follows a. invoice amount less 2% discount less freight paid. b. Invoice amount less 4% discount plus freight paid. c. Invoice amount less 2% discount d. Invoice amount less 4% discount S. Maria sold merchandise on account, terms, 4/1o, 2/15, n/30: FOB shipping point, Prepaid. If the account was collected on the9th day, the cash receive is computed as follows a. Invoice amount less 4% discount plus freight paid b. Invoice amount less 49% discount less freight paid Invoice amount less 4% discount Invoice amount less 2% discount plus freight paid d. its account on the 12h day, with the following terms: 6/10.4/15: FOB destination, Collect The journal entry to record the collection includes; a. Debit Accounts receivable b. Credit Accounts payable Debit Cash (invoice amount less 4% discount less freight paid) Credit Cash (invoice amount less 4 % discount) d. 297

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