Accounting HELP PLEASE!?

Question

The primary difference between a periodic and perpetual inventory system is that a
 a.	 periodic system determines the inventory on hand only at the end of the accounting period	
b.	 periodic system keeps a record showing the inventory on hand at all times	
c.	 periodic system provides an easy means to determine inventory shrinkage	
d.	 periodic system records the cost of the sale on the date the sale is made	

A sales invoice included the following information: merchandise price, $4,000; transportation, $300; terms 1/10, n/eom, FOB shipping point. Assuming that a credit for merchandise returned of $600 is granted prior to payment, that the transportation is prepaid by the seller, and that the invoice is paid within the discount period, what is the amount of cash received by the seller?
 	a.	 $3,400	
	b.	 $3,666	
	c.	 $3,366	
	d.	 $3,950	
 

Which of the following items would affect the cost of merchandise inventory acquired during the period?
 	a.	 cash discounts	
	b.	 transportation-in	
	c.	 quantity discounts	
	d.	 All of these choices.	



Under a perpetual inventory system
 	a.	 increases in inventory resulting from purchases are debited to Purchases	
	b.	 accounting records continuously disclose the amount of inventory	
	c.	 the purchase returns and allowances account is credited when goods are returned to vendors	
	d.	 there is no need for a year-end physical count

Orwel · Accepted Answer

For the 1 one, a is correct, since under period system you will not how much inventory you have only at the end of the accounting period. 
B is incorrect, since this system does not track change in inventory each time there is a change. 
C is incorrect, since with periodic system it is not so easy to determine the exact shrinkage, since you will know only at the end of accounting period how much you have on hand and how much you have sold. Quantity sold also could include shrinkage and inventory stolen.
D is incorrect since periodic system does not record cost of goods sold at the moment of sale

For the second I would say, correct asnwer is b, i.e. 
for transportation we get advance of 300$. Remaining amount of $4000 reduced by $600 and is 3400$. On this 1% of discount for early payment is applied, cash received is 3400-3400*0.01=3366

total amount of cash received is 300+3366=3666$

for the third I would say d is correct, since you have to take into account all the discounts and transportation costs in while calculating cost of inventory

for the last one b is correct, since accounting records will indicate inventory on hand at any time. Inventory count is still recommended

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Accounting HELP PLEASE!?

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