X-Mart uses the perpetual inventory system to account for its merchandise. On June 1, it sold $7,000 of merchandise for cash.

X-Mart uses the perpetual inventory system to account for its merchandise. On June 1, it sold $7,000
of merchandise for cash. The original cost of the merchandise to X-Mart was $500. Demonstrate the
required journal entry to record the sale and the cost of the sale by selecting all of the correct actions
below. (Check all that apply.)

Credit Sales $7,000.
Debit Cash $7,000.
Credit Cash $7,000.
Debit Sales $7,000.
Credit Cost of Goods Sold $500.
Debit Merchandise inventory $500.
Credit Merchandise inventory $500.
Debit Cost of Goods Sold $500.


Given the following information for Q-mart, calculate its gross margin ratio.
Net sales $10,000
Cost of goods sold $3,200

68%
32%
100%


Credit terms of n/15 EOM were printed on an Invoice. Explain what this means.

The credit period ends on the 15th of the month.
The buyer will receive a 15% discount If the Invoice Is paid by the 15 of the month.
The credit terms stand for net 15 days after end of month.
The discount period lasts only 15 days from the Invoice date.