Chapter 3 Review QuestionsNOTE: This was not a class activity.

1 On Dec. 29, 2011 Barnett Co. ships $200,000 of merchandise by common carrier to JentonCo. The terms of the sale are 2/10, n/30, FOB shipping point. It takes 4 days for themerchandise to arrive at Jenton Co. Both companies have Dec. 31 year-ends. How longdoes Jenton Co. have to take the discount?

A 2 daysB 4 daysC 10 daysD 30 days

2 On Dec. 29, 2011 Barnett Co. ships $200,000 of merchandise by common carrier to JentonCo. The terms of the sale are 2/10, n/30, FOB shipping point. It takes 4 days for themerchandise to arrive at Jenton Co. Both companies have Dec. 31 year-ends. How muchis the discount?

A $4,000B $10,000C $30,000D None of the above.

3 On Dec. 29, 2011 Barnett Co. ships $200,000 of merchandise by common carrier to JentonCo. The terms of the sale are 2/10, n/30, FOB shipping point. It takes 4 days for themerchandise to arrive at Jenton Co. Both companies have Dec. 31 year-ends. How longuntil the invoice is past due?

A 2 daysB 4 daysC 15 daysD 30 days

4 On Dec. 29, 2011 Barnett Co. ships $200,000 of merchandise by common carrier to JentonCo. The terms of the sale are 2/10, n/30, FOB shipping point. It takes 4 days for themerchandise to arrive at Jenton Co. Both companies have Dec. 31 year-ends. Who willshow the inventory on their 12/31/11 balance sheet?

A Barnett CompanyB Jenton CompanyC Neither companyD I don't know

5 A candy store sells over 100 types of candy. One of the candies sold is malted milk balls.The cost of the malted milk balls is a:

A fixed costB variable costC mixed costD strategic cost

6 Your cell phone company charges you $39.99 a month plus $.06 per minute for everyminute over 1,000 minutes you talk each month. For the cell phone company, what type ofrevenue behavior pattern does this describe:

A fixed revenueB variable revenueC mixed revenueD evaluating revenue