Author: Anonymous

A company, using the periodic inventory system, has merchandise inventory costing $800 on hand at the beginning of the period.  During the period, merchandise costing $250 is purchased.  At year-end, merchandise inventory costing $720 is on hand in ending inventory.  The cost of merchandise sold for the year is

On January 1, merchandise with a sales price of $5,000 is sold on account with terms 2/10, n/30.  The journal entry to record the collection on January 9 would include a

Which of these are classified as “involuntary?”

Given the following information, compute inventory turnover:   Sales                                        $220,000                      Inventory, beginning of year                      $39,500 Cost of Goods Sold         $180,000                      Inventory, end of year                                    $41,000     SELECT RATIOS Accounts receivable (AR) turnover Net Sales / (Average AR) Days Sales Outstanding  365 / AR Turnover Inventory turnover COGS / (Average Inv) Days Sales in Inventory  365 / Inventory Turnover

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