Net sales is sales revenue ($10,000) less both sales returns and allowances ($500) and sales discounts ($1,000), for a net sales total of $8,500.

Which of the following will be shown on the income statement for a merchandising company?

A sales revenue section

Cost of goods sold

All of the answer choices are correct

Gross profit

This entry requires a debit to Freight-out and a credit to cash. Freight-out is not part of the cost of inventory.

Which of the following items does not result in an entry to the Inventory account under a perpetual system?

A return of Inventory to the supplier

Payment of freight costs for goods shipped to a customer

Payment of freight costs for goods received from a supplier

	A purchase of merchandise
Net sales is sales revenue ($10,000) less both sales returns and allowances ($500) and sales discounts ($1,000), for a net sales total of $8,500.

Sales revenue total to $10,000. Sales returns and allowances are $500 and sales discounts are $1,000. How much is net sales?

$11,500

$8,500

$10,500

$10,000

Indicate the nature of each account.Indicate the normal balance by inserting Debit or Credit.

Indicate the nature of each account. Type Of Account 1. Supplies  None of the aboveExpenseAssetLiabilityRevenues 2. Note Payable  AssetLiabilityRevenuesExpenseNone of the above 3. Service Revenue  RevenuesNone of the aboveAssetLiabilityExpense 4. Dividends  AssetLiabilityExpenseRevenuesNone of the above 5. Accounts Payable  LiabilityRevenuesAssetExpenseNone of the above 6. Salaries and Wages Expense  LiabilityExpenseRevenuesNone of the aboveAsset 7. Common Stock  None of the aboveExpenseAssetLiabilityRevenues 8. Accounts Receivable  ExpenseLiabilityNone of the aboveAssetRevenues 9. Equipment  RevenuesAssetLiabilityExpenseNone of the above 10. Notes Receivable  LiabilityNone of the aboveExpenseRevenuesAsset SHOW ANSWER LINK TO TEXT Attempts: 1 of 1 used

(b) Your answer is correct.     Indicate the normal balance by inserting Debit or Credit. Normal Balance 1. Supplies  CreditDebit 2. Note Payable  DebitCredit 3. Service Revenue  DebitCredit 4. Dividends  DebitCredit 5. Accounts Payable  CreditDebit 6. Salaries and Wages Expense  CreditDebit 7. Common Stock  DebitCredit 8. Accounts Receivable  CreditDebit 9. Equipment  DebitCredit 10. Notes Receivable  CreditDebit