Principles of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon Cooper

Chapter 6 Merchandising Transactions - all with Video Answers

Educators

Section 1

Compare and Contrast Merchandising versus Service Activities and Transactions

04:37

Problem 1

Which of the following is an example of a contra revenue account?
A. sales
B. merchandise inventory
C. sales discounts
D. accounts payable

Puneet P.

Numerade Educator

04:15

What accounts are used to recognize a retailer’s purchase from a manufacturer on credit?
A. accounts receivable, merchandise inventory
B. accounts payable, merchandise inventory
C. accounts payable, cash
D. sales, accounts receivable

Puneet P.

Numerade Educator

02:42

Problem 3

Which of the following numbers represents the discount percentage applied if a customer pays within a discount window and credit terms are 3/15, n/60?
A. 3
B. 15
C. 60
D. 3 and 15

Puneet P.

Numerade Educator

03:48

Problem 4

If a customer purchases merchandise on credit and returns the defective merchandise before payment, what accounts would recognize this transaction?
A. sales discount, cash
B. sales returns and allowances, cash
C. accounts receivable, sales discount
D. accounts receivable, sales returns and allowances

Puneet P.

Numerade Educator