ACC 231 ASU Exam 2 Wolfe Question
and answers already passed
2025/2026
Journal Entry for Purchasing Inventory from a Supplier - correct answer ✔DR Inventory $
CR Cash/Accounts Payable $
Journal Entry for Returning Items to a Supplier - correct answer ✔DR Accounts Payable or Cash $
CR Inventory $
Recording Sale of Inventory to Customers - correct answer ✔must have a journal entry for recording
revenue and one for the COGS
Journal Entry for Sale of Inventory (recording revenue) - correct answer ✔DR Cash or Accounts
Receivable $
CR Revenue $
Journal Entry for Sale of Inventory (recording COGS) - correct answer ✔DR COGS $
CR Inventory $
Recording Customer Returns - correct answer ✔must have a journal entry for the sales return
transaction and one for the returned inventory
Journal Entry for Customer Returns (recording sales return) - correct answer ✔DR Sale Returns and
Allowances $
CR Cash or Accounts Receivable $
, Journal Entry for Customer Returns (recording returned inventory) - correct answer ✔DR Inventory $
CR COGS $
Formula for Calculating a Sales Discount/Purchase Discount - correct answer ✔dollar amount x % = the
discount
Meaning of 5/20, n30 - correct answer ✔5% discount on purchase if the amount is paid within 20 days
of the purchase, otherwise the full amount is due in 30 days
Freight Shipping - correct answer ✔-when freight is involved the shipping terms are usually Free on
Board Shipping Point or Free on Board Destination
-specifies when title changes hands
Free On Board (FOB) Shipping Point - correct answer ✔-title changes hands as soon as the
shipment/goods leave the supplier's warehouse
-buyers pay for the freight because the costs can be directly attributed to specific goods
-freight costs are often attached to the COGS that are being shipped
Free on Board (FOB) Destination - correct answer ✔-title changes hand as soon as the shipment arrives
at the destination
-typically the seller pays freight charges and would record these costs as Delivery Expenses
Single-Step Income Statement - correct answer ✔-offer a very straightforward accounting of a
company's business activity
-details revenues and expenses and results in the Net Income
Multi-Step Income Statement - correct answer ✔offers detailed information about the gross profit and
operating profit of a company and shows the various sources of revenues and expenses
and answers already passed
2025/2026
Journal Entry for Purchasing Inventory from a Supplier - correct answer ✔DR Inventory $
CR Cash/Accounts Payable $
Journal Entry for Returning Items to a Supplier - correct answer ✔DR Accounts Payable or Cash $
CR Inventory $
Recording Sale of Inventory to Customers - correct answer ✔must have a journal entry for recording
revenue and one for the COGS
Journal Entry for Sale of Inventory (recording revenue) - correct answer ✔DR Cash or Accounts
Receivable $
CR Revenue $
Journal Entry for Sale of Inventory (recording COGS) - correct answer ✔DR COGS $
CR Inventory $
Recording Customer Returns - correct answer ✔must have a journal entry for the sales return
transaction and one for the returned inventory
Journal Entry for Customer Returns (recording sales return) - correct answer ✔DR Sale Returns and
Allowances $
CR Cash or Accounts Receivable $
, Journal Entry for Customer Returns (recording returned inventory) - correct answer ✔DR Inventory $
CR COGS $
Formula for Calculating a Sales Discount/Purchase Discount - correct answer ✔dollar amount x % = the
discount
Meaning of 5/20, n30 - correct answer ✔5% discount on purchase if the amount is paid within 20 days
of the purchase, otherwise the full amount is due in 30 days
Freight Shipping - correct answer ✔-when freight is involved the shipping terms are usually Free on
Board Shipping Point or Free on Board Destination
-specifies when title changes hands
Free On Board (FOB) Shipping Point - correct answer ✔-title changes hands as soon as the
shipment/goods leave the supplier's warehouse
-buyers pay for the freight because the costs can be directly attributed to specific goods
-freight costs are often attached to the COGS that are being shipped
Free on Board (FOB) Destination - correct answer ✔-title changes hand as soon as the shipment arrives
at the destination
-typically the seller pays freight charges and would record these costs as Delivery Expenses
Single-Step Income Statement - correct answer ✔-offer a very straightforward accounting of a
company's business activity
-details revenues and expenses and results in the Net Income
Multi-Step Income Statement - correct answer ✔offers detailed information about the gross profit and
operating profit of a company and shows the various sources of revenues and expenses
