Which inventory system updates the inventory account only at the end of the accounting period quizlet?

Myers and Company sold $1,800 of merchandise on account to Oscar, Inc. on March 1 with credit terms of 2/10, n/30. Oscar returned $500 of the merchandise due to poor quality on March 3. If Oscar pays for the purchase on March 11, what entry does Myers make to record receipt of the payment?

Entry field with correct answer

Cash 1,800
Sales Discount 36
Accounts Receivable 1,764

Cash 1,764
Accounts Receivable 1,764

Cash 1,800
Sales Returns and Allowances 500
Accounts Receivable 1,300

Cash 1,274
Sales Discount 26
Accounts Receivable 1,300

Assume that sales revenue are $450,000, sales discounts are $10,000, net income is $35,000, and cost of goods sold is $320,000. How much are gross profit and operating expenses, respectively?

Entry field with correct answer
$120,000 and $85,000
$130,000 and $85,000
$130,000 and $95,000
$120,000 and $95,000

If beginning inventory is $60,000, cost of goods purchased is $380,000, sales revenue is $800,000 and ending inventory is $50,000, how much is cost of goods sold under a periodic system?

Entry field with correct answer
$390,000
$410,000
$420,000
$440,000

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If net sales are $400,000, cost of goods sold is $310,000, and operating expenses are $60,000, what is the gross profit?

(a) $30,000.

(b) $90,000.

(c) $340,000.

(d) $400,000.

If beginning inventory is $60,000, cost of goods purchased is $380,000, and ending inventory is $50,000, what is cost of goods sold under a periodic system?

(a) $390,000.

(b) $370,000.

(c) $330,000.

(d) $420,000.

Bufford Corporation had reported the following amounts at December 31, 2017: sales revenue $184,000, ending inventory $11,600, beginning inventory $17,200, purchases $60,400, purchase discounts $3,000, purchase returns and allowances $1,100, freight-in $600, and freight-out $900. Calculate the cost of goods available for sale.

(a) $69,400.

(b) $74,100.

(c) $56,900.

(d) $197,700.

During the year ended December 31, 2017, Bjornstad Corporation had the following results: net sales $267,000, cost of goods sold $107,000, net income $92,400, operating expenses $55,400, and net cash provided by operating activities $108,950. What was the company's profit margin?

(a) 40%.
(b) 60%.
(c) 20.5%.
(d) 34.6%.

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Which inventory system updates the inventory account only at the end of the accounting period?

A periodic inventory system only updates the ending inventory balance in the general ledger when a physical inventory count is conducted.

When an inventory system updates the inventory account at the time of each sale this is known as?

A perpetual inventory system automatically updates and records the inventory account every time a sale, or purchase of inventory, occurs.

What is perpetual inventory system?

A perpetual inventory system is a program that continuously estimates your inventory based on your electronic records, not a physical inventory. This system starts with the baseline from a physical count and updates based on purchases made in and shipments made out.

What type of inventory system is being used when inventory records are updated only at the end of each month?

periodic inventory system An inventory system in which the inventory records are updated only after a physical count has been taken at periodic intervals, usually at the end of an accounting period.