Review التطبيق الأول

Schools, Consultation companies, and Accounting firms are example of 

• Merchandising companies

• Service companies

Damaged goods or Obsolete goods are not counted in inventory if 

• Can be sold at Discounted price

• Cannot be sold 

Ali Awami company uses perpetual inventory system it has credit Sales of BD135,000, Sale Discount BD5000, Sales Return 10,000 what is the balance in sales account that expected to be received

• BD100,000

• BD120,000

• BD130,000

• BD125,000

Fawaz company purchased merchandise from Abdulla Est for cash, Journal entry recorded in Fawaz company accounts

• Debit.Merchandise Inventory     Credit.Account Receivable

• Debit.Merchandise Inventory     Credit. Cash

• Debit.Merchandise Inventory     Credit.Inventory

Manama company purchased merchandise from Sitra Corporation on account, Journal entry recorded in Manama company accounts

• Debit.Merchandise Inventory     Credit.Sales

• Debit.Merchandise Inventory     Credit.Account Payable

• Debit.Merchandise Inventory     Credit. Cash

• Debit.Merchandise Inventory     Credit.Merchandise Inventory

S.Hadi Corporation receive refund from  ALHADAD Est, BD500 for returned goods on cash purchase, what is the required journal entry

• Debit.Account Receivable        Credit. Merchandise Inventory

• Debit. Cash    Credit. Merchandise Inventory

• Debit.Account Receivable        Credit. Sales

• Debit.Account Payable

  Credit. Merchandise Inventory

The term 10/5, n30

• Full Amount to be paid withis 5 days

• Full Amount to be paid within 5 days 30% discount wihin 30 days 

• Full Amount to be paid within 30 days 10% discount within 5 days

Ahmed company sold goods to customer Kumail Est for BD21,000 cash, the cost of goods sold is 15,000 the journal entry to be recorded 

• Debit Cash Credit Sales /and Debit Cost of goods Sold Credit Merchandise Inventory

• Debit Cash Credit Sales 

The second entry in sales return and allowances transaction is 

• Debit. Merchandise Inventory     Credit. Account Receivable

• Debit. Merchandise Inventory     Credit. Cost of Goods Sold