Q 5.3 : In a inventory system , the cost of goods is determined only at the end of the accounting period Q 5.4 : A company receives a discount for paying for merchandise purchased within the discount period . How will the amount of the discount be recorded in a perpetual inventory system ? Q 5.5 : What does the freight term “ FOB destination ” mean ? Q 5.6 : A retailer acquires merchandise for resale . How would this be recorded in a perpetual inventory system ? Q 5.7 : If the credit terms on a sales invoice read “ 2 / 10 , n / 30 ,” what does this mean ? Q 5.8 : In which of the following scenarios would a Sales and Returns and Allowances account NOT be debited ? Q 5.9 : ________ has a normal credit balance . Q 5.10 : Which of the following is NOT a contra revenue account ? Q 5.11 : In a perpetual inventory system , when is the Cost of Goods Sold account used ? Q 5.12 : ________ is shown on a multiple-step but not on a single-step income statement . Q 5.13 : Why might a company choose to use the single-step income statement ? Select all that apply . Q 5.14 : At the beginning of January 2014 , a company reported inventory of $ 4,000 . During the month , the company made purchases of $ 17,800 . On January 31 , 2014 , a physical count of inventory reported $ 4,200 on hand . Find the cost of goods sold for the month . Q 5.15 : ________ requires a physical count of goods on hand to compute the cost of goods sold . Q 5.16 : During the year , a company ’ s inventory decreased by $ 20,000 . If the company ’ s cost of goods sold for the year was $ 400,000 , find the amount for purchases . Q 5.17 : How is the gross profit rate computed Q 5.18 : How is the profit margin computed ? Q 5.19 : How is the quality of earnings ratio computed ? Q 5.20 : How do you calculate the cost of goods for sale if closing inventory is nil ?
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