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Questions and Answers
What is the net purchases amount after accounting for purchase returns and allowances?
What is the net purchases amount after accounting for purchase returns and allowances?
What is the total cash payment made by the company after returning merchandise and applying discounts?
What is the total cash payment made by the company after returning merchandise and applying discounts?
Which formula should be used to determine the net cost of purchases?
Which formula should be used to determine the net cost of purchases?
How are the total goods available for sale calculated?
How are the total goods available for sale calculated?
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What amount represents the total goods available for sale based on the given data?
What amount represents the total goods available for sale based on the given data?
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What is the total cash received by the company for delivery services?
What is the total cash received by the company for delivery services?
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How much is the balance in Accounts Receivable at the end of the month?
How much is the balance in Accounts Receivable at the end of the month?
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What is the total amount of Owner’s Equity after accounting for all activities mentioned?
What is the total amount of Owner’s Equity after accounting for all activities mentioned?
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What is the percentage of the cash discount for early payment based on the provided journal entry?
What is the percentage of the cash discount for early payment based on the provided journal entry?
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What was the total cost incurred for the merchandise after accounting for discounts and returns?
What was the total cost incurred for the merchandise after accounting for discounts and returns?
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What is the total amount spent on utilities by the company during the month?
What is the total amount spent on utilities by the company during the month?
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How much cash did the owner withdraw for personal use during the month?
How much cash did the owner withdraw for personal use during the month?
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Which of the following amounts reflects the total expenses incurred by the company?
Which of the following amounts reflects the total expenses incurred by the company?
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What is the net purchases amount after considering purchase returns and allowances?
What is the net purchases amount after considering purchase returns and allowances?
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How much was the cash paid by the company after applying trade discounts and considering merchandise returns?
How much was the cash paid by the company after applying trade discounts and considering merchandise returns?
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What is the total sales revenue for an entity selling 100 units after applying a 40% trade discount?
What is the total sales revenue for an entity selling 100 units after applying a 40% trade discount?
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What is the value of the purchase discount applicable on a balance of ₱ 13,400?
What is the value of the purchase discount applicable on a balance of ₱ 13,400?
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What is the cost of goods available for sale after adding the beginning inventory and net purchases?
What is the cost of goods available for sale after adding the beginning inventory and net purchases?
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What is the invoice price per unit after applying a 40% discount on a list price of ₱ 300?
What is the invoice price per unit after applying a 40% discount on a list price of ₱ 300?
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Under the terms 2/10, n/30, what does the term '2' represent?
Under the terms 2/10, n/30, what does the term '2' represent?
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What is the total cost incurred by a customer who buys 100 units with a shipping cost of ₱ 7 per unit?
What is the total cost incurred by a customer who buys 100 units with a shipping cost of ₱ 7 per unit?
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What is the total cash collected by the customer after applying the credit memo and sales discount?
What is the total cash collected by the customer after applying the credit memo and sales discount?
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What is the net cost of purchases after returning merchandise and applying discounts?
What is the net cost of purchases after returning merchandise and applying discounts?
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How much was the sales discount applied to the sales returns in the transactions?
How much was the sales discount applied to the sales returns in the transactions?
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What is the maturity value of the note after lending P30,000 at an interest rate of 9% for one year?
What is the maturity value of the note after lending P30,000 at an interest rate of 9% for one year?
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How much did the company pay for freight on the shipment?
How much did the company pay for freight on the shipment?
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What was the total payment made by the entity on November 11?
What was the total payment made by the entity on November 11?
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What is the amount of cash paid by the company after the purchase returns and discount?
What is the amount of cash paid by the company after the purchase returns and discount?
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What amount represents the total sales after returns before applying the discount?
What amount represents the total sales after returns before applying the discount?
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If the customer pays within the discount period, how much cash does the company collect?
If the customer pays within the discount period, how much cash does the company collect?
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What is the discount amount applied on the purchase of inventory after returns?
What is the discount amount applied on the purchase of inventory after returns?
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What is the accounts payable balance after the partial payment and discounts?
What is the accounts payable balance after the partial payment and discounts?
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How is the purchase discount for the inventory calculated?
How is the purchase discount for the inventory calculated?
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What are the freight terms mentioned for the inventory purchase?
What are the freight terms mentioned for the inventory purchase?
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Study Notes
Practice Quiz - Quiz 2 Solutions
- Transaction Completion: The company completed transactions during the current month.
- Owner Investment: The owner invested P250,000 cash in the business.
- Equipment Purchase: Purchased delivery equipment for P32,000 on account.
- Equipment Repairs: Received a bill for P9,600 for equipment repairs, payable next month.
- Delivery Services: Performed delivery services for P128,000; collected P44,000 immediately, and the remaining balance is on account.
- Newspaper Advertisement: Issued a check for P5,000 for a newspaper advertisement.
- Utilities Expense: Issued a check for P7,500 for current month's utilities.
- Owner Withdrawals: The owner withdrew P15,000 cash for personal use.
- Cash Receipts from Credit Clients: Received P9,000 on account from credit clients.
Accounts Receivable Balance
- Delivery Services on Account: P84,000
- Collection on Account: P128,000 – P44,000
- Collection of Accounts Receivable: P9,000
- Final Balance: P75,000
Owner's Equity Balance
- Investment: P250,000
- Repair Expense: P9,600
- Service Revenue: P128,000
- Advertising Expense: P5,000
- Utilities Expense: P7,500
- Withdrawals: P15,000
- Final Balance: P340,900
Calculating the Cash Discount Percentage
- Journal Entry: Debit Cash P1,470, debit Sales Discounts P30, and credit Accounts Receivable P1,500
- Cash Discount Percentage: 2%
Cost of Merchandise
- Initial Purchase: P4,000 worth of merchandise
- Transportation Costs: Additional P350
- Returned Merchandise: Returned P250 worth
- Purchase Returns and Allowances: 250
- Purchase Discounts: 75
- Net Purchases: 3,675 – (250 + 75)
- Freight In: P350
- Net Cost of Purchases: 4,025
Cash Payment
- Original Purchase: P18,000
- Trade Discounts: 25% and 15%
- Purchase Returns: P600
- Net Purchases: 11,475
- Cash Payment: 10,875 (no discount taken as payment after discount period)
Goods Available for Sale
- Beginning Inventory: P77,000
- Net Purchases: P367,000
- Freight In: P42,000
- Total Goods Available for Sale: 486,000
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Description
This quiz focuses on understanding various transaction types in accounting, including owner investments, expenses, and accounts receivable management. You will evaluate different business scenarios to strengthen your grasp of financial principles and practices. Test your ability to classify and analyze transactions accurately.
