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Fundamentals of Accountancy, Business and Management (FDNACCT)

FDNACCT 06 · Merchandising

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Core and hard Quiz 2 questions with complete facts, misconception-based alternatives and worked solutions.

Jade Laurence EmpleoPublic25 questionsFundamentals of Accountancy, Business and Management (FDNACCT)Updated
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Exam
11concepts
14calculations
Conventions

Amounts are Philippine pesos (₱). Use accrual accounting and periodic inventory unless explicitly stated. Interest uses annual rates with days/360 or months/12; maturity dates use actual calendar days, excluding issue date. Cash-discount cases explicitly state the course original-balance convention. Numeric answers omit currency symbols; round monetary answers to two decimal places when needed. Each question supplies its own complete facts and is independent. No VAT or period-end adjustments apply unless stated.

Questions

01Which account is debited for goods purchased for resale under periodic inventory?
  1. Merchandise inventory
  2. Purchases
  3. Freight out
  4. Sales
FDNACCT Unit 4.6_Journalizing transactions specific to merchandising business_Study Guide.pdf, pp. 1–2; FDNACCT_Formula Guide_Quiz #2.pdf
02What invoice price is recorded?

Problem

All amounts are Philippine pesos (₱). Merchandise has a list price of 36,000. The discounts 10–5 mean successive trade discounts of 10%, then 5%; no separate trade-discount account is recorded.

  1. ₱30,600
  2. ₱30,780
  3. ₱34,200
  4. ₱32,400
FDNACCT Unit 4.6_Journalizing transactions specific to merchandising business_Class Exercise.xlsx, Mdsg; PS1; PS2; Systems
03What does the “10” in 2/10, n/30 represent?
  1. Discount amount in pesos
  2. Days available for the discount
  3. Number of shipments
  4. Trade discount rate
FDNACCT Unit 4.6_Journalizing transactions specific to merchandising business_Class Exercise.xlsx, Mdsg; PS1; PS2; Systems
04Who bears freight responsibility under FOB shipping point, collect?
  1. Buyer
  2. Seller
  3. Neither
  4. Bank
FDNACCT Unit 4.6_Journalizing transactions specific to merchandising business_Study Guide.pdf, pp. 1–2; FDNACCT_Formula Guide_Quiz #2.pdf
05FOB destination, prepaid: what freight entry does the seller make?
  1. Dr Freight in; Cr AP
  2. Dr Freight out; Cr Cash
  3. Dr Cash; Cr Sales
  4. No entry
FDNACCT Unit 4.6_Journalizing transactions specific to merchandising business_Study Guide.pdf, pp. 1–2; FDNACCT_Formula Guide_Quiz #2.pdf
06FOB shipping point, prepaid: what is the buyer’s freight entry?
  1. Dr Freight in; Cr AP
  2. Dr AP; Cr Cash
  3. Dr Freight out; Cr Cash
  4. No entry
FDNACCT Unit 4.6_Journalizing transactions specific to merchandising business_Study Guide.pdf, pp. 1–2; FDNACCT_Formula Guide_Quiz #2.pdf
07What are net sales?

Problem

All amounts are Philippine pesos (₱). Use the periodic inventory system. The period’s balances are:

AccountAmount
Sales140,000
Sales returns and allowances7,000
Sales discounts5,000
Purchases85,000
Purchase returns and allowances4,000
Purchase discounts3,500
Freight in12,000
Beginning inventory20,000
Ending inventory16,700
  1. ₱152,000
  2. ₱128,000
  3. ₱133,000
  4. ₱135,000
FDNACCT Unit 4.6_Journalizing transactions specific to merchandising business_Class Exercise.xlsx, Mdsg; PS1; PS2; Systems
08What are net purchases, before freight?

Problem

All amounts are Philippine pesos (₱). Use the periodic inventory system. The period’s balances are:

AccountAmount
Sales140,000
Sales returns and allowances7,000
Sales discounts5,000
Purchases85,000
Purchase returns and allowances4,000
Purchase discounts3,500
Freight in12,000
Beginning inventory20,000
Ending inventory16,700
  1. ₱92,500
  2. ₱81,000
  3. ₱77,500
  4. ₱89,500
FDNACCT Unit 4.6_Journalizing transactions specific to merchandising business_Class Exercise.xlsx, Mdsg; PS1; PS2; Systems
09What is the net cost of purchases, including freight?

Problem

All amounts are Philippine pesos (₱). Use the periodic inventory system. The period’s balances are:

AccountAmount
Sales140,000
Sales returns and allowances7,000
Sales discounts5,000
Purchases85,000
Purchase returns and allowances4,000
Purchase discounts3,500
Freight in12,000
Beginning inventory20,000
Ending inventory16,700
  1. ₱65,500
  2. ₱77,500
  3. ₱89,500
  4. ₱109,500
FDNACCT Unit 4.6_Journalizing transactions specific to merchandising business_Class Exercise.xlsx, Mdsg; PS1; PS2; Systems
10What is cost of sales?

Problem

All amounts are Philippine pesos (₱). Use the periodic inventory system. The period’s balances are:

AccountAmount
Sales140,000
Sales returns and allowances7,000
Sales discounts5,000
Purchases85,000
Purchase returns and allowances4,000
Purchase discounts3,500
Freight in12,000
Beginning inventory20,000
Ending inventory16,700
  1. ₱109,500
  2. ₱92,800
  3. ₱106,200
  4. ₱126,200
FDNACCT Unit 4.6_Journalizing transactions specific to merchandising business_Class Exercise.xlsx, Mdsg; PS1; PS2; Systems
11What is gross profit?

Problem

All amounts are Philippine pesos (₱). Use the periodic inventory system. The period’s balances are:

AccountAmount
Sales140,000
Sales returns and allowances7,000
Sales discounts5,000
Purchases85,000
Purchase returns and allowances4,000
Purchase discounts3,500
Freight in12,000
Beginning inventory20,000
Ending inventory16,700
  1. ₱35,200
  2. ₱220,800
  3. ₱92,800
  4. ₱128,000
FDNACCT Unit 4.6_Journalizing transactions specific to merchandising business_Class Exercise.xlsx, Mdsg; PS1; PS2; Systems
12Which has a debit normal balance?
  1. Purchase discounts
  2. Purchase returns
  3. Sales discounts
  4. Sales
FDNACCT Unit 4.6_Journalizing transactions specific to merchandising business_Study Guide.pdf, pp. 1–2; FDNACCT_Formula Guide_Quiz #2.pdf
13What cash discount applies under the specified formula?

Problem

All amounts are Philippine pesos (₱). Use the periodic inventory system. FDN Trading buys merchandise listed at 36,000, less successive trade discounts of 10% then 5%. It pays 10,000 down; the balance has terms 2/10, n/30. It returns 1,000 of invoiced goods and makes a prior partial payment of 5,000. It settles the balance within the discount period. The 900 freight is FOB shipping point, collect, paid separately; freight is excluded from the supplier-account discount base. For this exercise, apply the course formula: compute the 2% cash discount on the original payable after downpayment and returns; subtract prior partial payments separately when finding final cash.

  1. ₱295.60
  2. ₱395.60
  3. ₱615.60
  4. ₱415.60
FDNACCT Unit 4.6_Journalizing transactions specific to merchandising business_Class Exercise.xlsx, Mdsg; PS1; PS2; Systems
14What final cash payment settles the supplier account?

Problem

All amounts are Philippine pesos (₱). Use the periodic inventory system. FDN Trading buys merchandise listed at 36,000, less successive trade discounts of 10% then 5%. It pays 10,000 down; the balance has terms 2/10, n/30. It returns 1,000 of invoiced goods and makes a prior partial payment of 5,000. It settles the balance within the discount period. The 900 freight is FOB shipping point, collect, paid separately; freight is excluded from the supplier-account discount base. For this exercise, apply the course formula: compute the 2% cash discount on the original payable after downpayment and returns; subtract prior partial payments separately when finding final cash.

  1. ₱14,384.40
  2. ₱14,780
  3. ₱19,384.40
  4. ₱14,484.40
FDNACCT Unit 4.6_Journalizing transactions specific to merchandising business_Class Exercise.xlsx, Mdsg; PS1; PS2; Systems
15Which additional entry accompanies a sale under perpetual inventory?
  1. Dr Cost of sales; Cr Inventory
  2. Dr Purchases; Cr Sales
  3. Dr Capital; Cr Inventory
  4. No cost entry ever
FDNACCT Unit 4.6_Journalizing transactions specific to merchandising business_Class Exercise.xlsx, Mdsg; PS1; PS2; Systems
16What is final cash paid to the supplier within the discount window?

Problem

Periodic buyer: list ₱240,000 less successive 10–5; 25% invoice down; return ₱3,900 at invoice value; prior partial payment ₱36,000, no discount previously recorded. Final settlement qualifies for 2%. Course discount base is original AP after down/returns, before partial payment. Separately paid FOB shipping-point collect freight ₱4,200 is outside supplier account/base.

  1. ₱115,200
  2. ₱147,000
  3. ₱111,000
  4. ₱111,720
CONFERENCE EXERCISE #1 - Journalizing Non-VAT Transactions (MIMA ROPA COMPANY)-1 (1).xlsx Sheet1; FDNACCT_Formula Guide_Quiz #2.pdf, original analogue
17What net cost of this purchase is recognized?

Problem

Periodic buyer: Purchases invoice ₱205,200, Purchase returns ₱3,900, Purchase discount earned ₱3,000, buyer-borne Freight in ₱4,200. Cash down ₱51,300 and partial settlement ₱36,000 are also in the records.

  1. ₱206,400
  2. ₱202,500
  3. ₱198,300
  4. ₱147,000
FDNACCT_Formula Guide_Quiz #2.pdf; FDNACCT_2526_T2_Quiz #2_1_Questionnaire.pdf III.13, original analogue
18What final cash does the seller collect?

Problem

Sale September 4, 2026: list ₱160,000 less 10%; terms 3/5, 1/15, n/30. Customer paid ₱1,800 FOB destination collect freight for seller, returned ₱4,000 invoiced goods, and paid ₱35,000 partially without discount. Final settlement September 19. Course discount base is invoice less returns, excluding freight reimbursement and partial collection from the base.

  1. ₱101,800
  2. ₱103,200
  3. ₱100,000
  4. ₱104,600
FDNACCT_Formula Guide_Quiz #2.pdf; CONFERENCE EXERCISE #1 - Journalizing Non-VAT Transactions (MIMA ROPA COMPANY)-1 (1).xlsx Sheet1, original analogue
19What is gross profit?

Problem

Periodic raw balances (₱): Sales 720,000; Purchases 380,000; Freight out 12,000; Beginning inventory 95,000; Sales discounts 11,000; Purchase returns 17,000; Salaries expense 54,000; Freight in 13,000; Sales returns 24,000; Ending inventory 88,000; Purchase discounts 9,000.

  1. ₱245,000
  2. ₱299,000
  3. ₱374,000
  4. ₱311,000
FDNACCT_Formula Guide_Quiz #2.pdf; FDNACCT_2526_T2_Quiz #2_1_Questionnaire.pdf III.10–11, original analogue
20What is cost of sales?

Problem

Periodic balances (₱): Beginning inventory 82,000; Ending inventory 63,000; Net cost of purchases 345,000; Purchase discounts 7,000; Purchase returns 10,000; Freight in 12,000; Freight out 9,000. The net cost subtotal is complete.

  1. ₱357,000
  2. ₱381,000
  3. ₱364,000
  4. ₱376,000
FDNACCT_2526_T1_Quiz #2_1_Questionnaire.pdf III.10, original analogue
21How much is paid on September 12?

Problem

Original AP ₱153,900 from September 1, 2026 purchase, terms 2/10, n/30. Invoice-value return ₱3,900; prior payment ₱36,000. No discount recorded earlier. Final payment September 12, 2026.

  1. ₱150,000
  2. ₱114,000
  3. ₱111,000
  4. ₱111,720
FDNACCT Unit 4.6_Journalizing transactions specific to merchandising business_Study Guide.pdf p.1; FDNACCT_2526_T2_Quiz #2_1_Questionnaire.pdf I.7, original analogue
22Which buyer entry records the freight reimbursement obligation?

Problem

FOB shipping point, prepaid. Seller pays ₱2,700 to the carrier on buyer’s behalf. Buyer uses periodic inventory and will reimburse seller.

  1. Dr Freight in 2,700; Cr AP 2,700
  2. Dr Freight out 2,700; Cr Cash 2,700
  3. Dr AP 2,700; Cr Cash 2,700
  4. No buyer entry
FDNACCT Unit 4.6_Journalizing transactions specific to merchandising business_Study Guide.pdf p.2
23Which statement correctly handles a seller-paid freight cost under FOB destination, prepaid?
  1. It is Freight in and increases Net sales
  2. It is a trade discount and reduces Sales directly
  3. It must be added to the cash-discount base
  4. It is Freight out and does not reduce the Net sales subtotal
FDNACCT Unit 4.6_Journalizing transactions specific to merchandising business_Study Guide.pdf p.2
24Which entry records a price allowance granted to a credit customer who keeps the goods?
  1. Dr Accounts receivable; Cr Sales returns and allowances
  2. Dr Freight out; Cr Accounts receivable
  3. Dr Sales returns and allowances; Cr Accounts receivable
  4. Dr Purchases; Cr Accounts payable
FDNACCT Unit 4.6_Journalizing transactions specific to merchandising business_Study Guide.pdf p.1; FDNACCT_2526_T2_Quiz #2_1_Questionnaire.pdf II.7
25Which journal receives a current cash sale when special journals are used?
  1. General journal for all cash sales
  2. Cash receipts journal
  3. Sales journal reserved for credit merchandise sales
  4. Purchases journal
FDNACCT Unit 4.6_Journalizing transactions specific to merchandising business_Study Guide.pdf p.2
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