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Honey Moon Wholesale $($HMW$)$s first months transactions are given below. Answer the question that follows each one. December $1$ Purchased inventory from Ralph Inc. for $$22,000,$ FOB destination, terms $2/10$ N$/30.$ How will HMW record the December $1$ transaction? $(1$ point$)$Multiple choice $1$ Question $14$increase both Accounts Payable and Inventory Expense increase both Accounts payable and Purchasesincrease both Accounts Payable and Inventory increase both Purchases and Inventory increase both Purchases and Inventory Expense December $2$ The appropriate company paid $$100$ freight on the December $1$ purchase. How will HMW record the December $2$ transaction? $(1$ point$)$Multiple choice $2$ Question $14$no entry requiredincrease both Inventory and Freight Expense increase both Inventory and Accounts Payable increase Freight Expense and decrease Cash increase both Freight Expense and Accounts Payable December $6$ Returned $$7,000$ worth of goods to Ralph, as they were the wrong colour. How will HMW record the December $3$ transaction? $(1$ point$)$Multiple choice $3$ Question $14$decrease Accounts Payable and increase Purchase Returns decrease both Purchases and Inventory Expense decrease both Accounts Payable and inventory decrease both Accounts Payable and Inventory Expensedecrease Inventory and increase Purchase Returns December $7$ Sold half of the remaining inventory that was purchased from Ralph, to Alice Inc. for $$12,500,$ FOB destination, terms $2/20$ N$/30.$ How will HMW record the December $7$ transaction? $(1$ point$)$Multiple choice $4$ Question $14$Increase Sales and Accounts Receivable by $$12,500$ each, and increase Cost of Goods Sold and decrease Inventory by $$7,500$ each Increase Sales and Accounts Receivable by $$12,500$ each, and increase Cost of Goods Sold and decrease Inventory by $$12,500$ each Increase Sales and Accounts Receivable by $$7,500$ each, and increase Cost of Goods Sold and decrease Inventory by $$12,500$ each increase Cost of Goods Sold and decrease Inventory by $$7,500$ eachIncrease Sales and Accounts Receivable by $$12,500$ each December $8$ The appropriate company paid $$150$ freight on the December $7$ sale. How will HMW record the December $8$ transaction? $(1$ point$)$Multiple choice $5$ Question $14$decrease Cash and increase Freight Expense increase both Accounts Payable and Cost of Goods Sold increase both Accounts Payable and Freight Expense decrease both Cash and Inventory no entry required December $10$ Paid Ralph the entire amount owed to him. In which accounts will HMW record the December $10$ transaction? $(1$ point$)$Multiple choice $6$ Question $14$decrease Cash and increase both Inventory and Accounts Payable decrease Cash and Accounts payable onlydecrease Cash and Accounts Payable, and increase Inventory decrease Cash and Inventory, and increase Accounts payable decrease Cash, Inventory, and Accounts Payable How much does HMW pay Ralph on December $10?(2$ points$)$Answer $1$ Question $14$ December $12-$ Purchased inventory worth $$18,000$ from Norton Inc., FOB shipping point, terms $3/15$ N$/45.$ How will HMW record the December $12$ transaction? $(1$ point$)$Multiple choice $7$ Question $14$increase both Purchases and Inventory increase both Accounts Payable and Inventory Expense increase both Purchases and Inventory Expense increase both Accounts Payable and Purchasesincrease both Accounts Payable and Inventory December $13-$ The appropriate company paid $$350$ freight on the December $12$ purchase. How will HMW record the December $13$ transaction? $(1$ point$)$Multiple choice $8$ Question $14$increase Inventory and decrease Cash increase Freight Expense and decrease Cash increase both Freight Expense and Accounts Payable no entry requiredincrease both Inventory and Accounts Payable increase both Inventory and Freight Expense December $17-$ Sold half of the inventory purchased from Norton to Trixie Ltd$.$ for $$13,500,$FOB shipping point, terms $3/10$ N$/20.$ How will HMW record the December $17$ transaction? $(1$ point$)$Multiple choice $9$ Question $14$Increase Sales and Accounts Receivable by $$13,500$ each Increase Sales and Accounts Receivable by $$13,500$ each, and increase Cost of Goods Sold and decrease Inventory by $$13,500$ each Increase Sales and Accounts Receivable by $$13,500$ each, and increase Cost of Goods Sold and decrease Inventory by $$9,000$ each Increase Sales and Accounts Receivable by $$9,000$ each, and increase Cost of Goods Sold and decrease Inventory by $$13,500$ each increase Cost of Goods Sold and decrease Inventory by $$9,000$ each December $18$ The appropriate company paid $$80$ freight on the December $17$ sale. How will HMW record the December $18$ transaction? $(1$ point$)$Multiple choice $10$ Question $14$no entry requireddecrease Cash and increase Freight Expense increase both Accounts Payable and Freight Expense increase both Accounts Payable and Cost of Goods Sold decrease both Cash and Inventory December $22-$ Trixie returned $$6,000$ worth of the goods she bought on December $17,$ as you shipped her the wrong size. How will HMW record the December $22$ transaction? $(1$ point$)$Multiple choice $11$ Question $14$Increase Inventory and decrease Cost of Goods Sold by $$4,000$ each Increase Inventory and decrease Cost of Goods Sold by $$6,000$ each, and decrease Accounts Receivable and increase Sales Returns by $$6,000$ each Increase Inventory and decrease Cost of Goods Sold by $$4,000$ each, and decrease Accounts Receivable and increase Sales Returns by $$6,000$ each Increase Inventory and decrease Cost of Goods Sold by $$4,000$ each, and decrease Accounts Receivable and increase Sales Returns by $$6,000$ each Decrease Accounts Receivable and increase Sales Returns by $$6,000$ each December $25$ Trixie paid her outstanding balance. In which accounts will HMW record the December $25$ transaction? $(1$ point$)$Multiple choice $12$ Question $14$Increase Cash and decrease Accounts Receivable only Increase Cash and decrease both Sales and Accounts Receivable Increase both Cash and Sales, and decrease Accounts ReceivableIncrease Cash and Sales Discounts $($reducing net sales$),$ and decrease Accounts Receivable Increase Cash and decrease Sales Discounts $($increasing net sales$),$ and decrease Accounts Receivable How much does Trixie pay HMW on December $25?(2$ points$)$Answer $2$ Question $14$ December $30$ Alice paid her outstanding balance. In which accounts will HMW record the December $30$ transaction? $(1$ point$)$Multiple choice $13$ Question $14$Increase Cash and decrease both Sales and Accounts Receivable Increase both Cash and Sales, and decrease Accounts ReceivableIncrease Cash and decrease both Sales and Accounts Receivable Increase Cash and decrease Accounts Receivable only Increase both Cash and Sales, and decrease Accounts Receivable How much does Alice pay HMW on December $30?(2$ points$)$Answer $3$ Question $14$ December $31$ Paid Norton the entire amount owed to him. In which accounts will HMW record the December $30$ transaction? $(1$ point$)$Multiple choice $14$ Question $14$Decrease Cash and Accounts Payable, and increase Inventory Decrease Cash and Accounts Payable only Decrease Cash and Inventory, and increase Accounts Payable Decrease Cash and increase both Inventory and Accounts PayableDecrease Cash, Inventory, and Accounts Payable How much does HMW pay Norton on December $31?(2$ points$)$

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