A Merchandiser Had Sales Returns and Allowances of $300, Sales

question 100

Multiple Choice

A merchandiser had sales returns and allowances of $300, sales discounts of $700, cost of goods sold of $12,000, and all other expenses of $4,500. The merchandiser uses a perpetual inventory system. The second entry in the closing process would include:

• A)a debit to Income summary for $17,500.
• B)a credit to Income summary for $16,500.
• C)a debit to Income summary for $4,500.
• D)a debit to Income summary for $16,500.

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Definitions:

Preapproach

In the personal selling process, occurs prior to meeting the customer for the first time and extends the qualification of leads procedure; in this step, the salesperson conducts additional research and develops plans for meeting with the customer.

Optimist

An individual who habitually looks on the more favorable side of events or conditions and expects the most favorable outcome.

Salesperson

A professional who sells products or services, often directly to consumers, playing a crucial role in the customer purchase experience.

Formal Guidelines

Officially established rules or instructions that dictate how something should be done, ensuring consistency and compliance in various procedures or behaviors.