41. The credit terms of a sale are normally indicated on a(n)
a. purchase order.
b. invoice.
c. bill of lading.
d. account receivable.
42. Merchandise is ordered on November 12; the merchandise is shipped by the seller and the invoice is prepared, dated, and mailed by the seller on November 15; the merchandise is received by the buyer on November 17; the transaction is recorded in the buyer's accounts on November 18. The credit period begins with what date?
a. November 12
b. November 15
c. November 17
d. November 18
43. Merchandise is ordered on November 12; the merchandise is shipped by the seller and the invoice is prepared, dated, and mailed by the seller on November 15; the merchandise is received by the buyer on November 17; the transaction is recorded in the seller's accounts on November 15. If the credit terms are 1/10, n/30, the credit period begins with what date?
a. November 12
b. November 15
c. November 17
d. November 22
44. A sales invoice included the following information: merchandise price, $4,500; transportation, $300; terms 1/10, n/eom, FOB shipping point. Assuming that a credit for merchandise returned of $600 is granted prior to payment, that the transportation is prepaid by the seller, and that the invoice is paid within the discount period, what is the amount of cash received by the seller?
a. $3,861
b. $4,158
c. $4,161
d. $4,200
45. Sometimes a(n) __________ is offered to buyers as a means of encouraging them to pay before the end of the credit period.
a. accounts receivable
b. credit card
c. sales discount
d. cash sale
46. The arrangements between buyer and seller as to when payments for merchandise are to be made are called
a. credit terms.
b. net cash.
c. cash on demand.
d. gross cash.
47. If a $20,000 sale is made on January 1, with terms of 2/10, n/30, how much would the discount be if payment is made on January 9?
a. $0
b. $200
c. $1,000
d. $400
48. In credit terms of 1/10, n/30, the “1” represents the
a. number of days in the discount period.
b. full amount of the invoice.
c. number of days when the entire amount is due.
d. percent of the cash discount.
49. Sales to customers who use bank credit cards such as MasterCard and Visa are usually recorded by a(n):
a. decrease in Bank Credit Card Sales, increase in Credit Card Expense, and increase in Sales.
b. increase in Cash and increase in Sales.
c. increase in Cash, decrease in Credit Card Expense, and increase in Sales.
d. decrease in Sales, increase in Credit Card Expense, and decrease in Cash.
50. In recording the cost of merchandise sold for cash using a perpetual inventory system, the effect on the accounts is
a. increase Cost of Merchandise Sold; increase Sales.
b. increase Cost of Merchandise Sold; decrease Merchandise Inventory.
c. increase Merchandise Inventory; decrease Cost of Merchandise Sold.
d. increase Accounts Receivable; decrease Merchandise Inventory.
