63.Freight costs paid through a seller on merchandise marketed to customers will reason an increase

a.in the selling price of the buyer.

You are watching: Freight costs incurred by a seller on merchandise sold to customers will cause an increase

b.in operating prices for the seller.

c.to the price of goods sold that the seller.

d.to a contra-revenue account the the seller.

64.Paden agency purchased merchandise indigenous Emmett firm with freight terms of FOB shipping point. The freight prices will be paid by the



c.transportation company.

d.buyer and also the seller.

65.Howard company purchased goods inventory with an invoice price of $7,000 and credit regards to 2/10, n/30. What is the net cost of the products if Howard firm pays within the discount period?





66.Randolf firm purchased merchandise with an invoice price that $3,000 and also credit regards to 3/10, n/30. Assuming a 360 job year, what is the implied annual interest rate natural in the credit transaction terms?





67.If a agency is provided credit terms of 2/10, n/30, that should

a.hold turn off paying the bill until the finish of the credit period, when investing the money in ~ 10% annual interest throughout this time.

b.pay in ~ the discount period and identify a savings.

c.pay within the credit duration but don’t take the problem to invest the cash while waiting to pay the bill.

d.recognize that the providers is desperate for cash and withhold payment until the end of the credit duration while negotiating a reduced sales price.

68.In a perpetual perform system, the amount of the discount permitted for paying because that merchandise purchased within the discount period is attributed to


b.Purchase Discounts.

c.Purchase Allowance.

d.Sales Discounts.

69.Maggie’s market recorded the following events involving a recent purchase of merchandise:





70.Costner’s sector recorded the following occasions involving a recent purchase of merchandise:

a.increased through $38,416.

b.increased by $38,612.

c.increased by $38,616.

d.increased by $39,400.

71.Under the perpetual system, cash freight expenses incurred by the the person who lives for the moving of goods is recorded in

a.Freight Expense.

b.Freight - In.


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dFreight - Out.

72.Glover Co. Changed defective items costing $5,000 come Mal company on April 19, because that credit. The products were purchased April 10, top top credit, state 3/10, n/30. The entry by Glover Co. On April 19, in receiving full credit is: