Exam 23: The Voucher System

The information contained on a voucher includes: invoice number and date;purchase order number;the amount to be paid,who is being paid;voucher number;and the verification steps.

The company uses the periodic inventory system and the voucher system.If the net method is applied,the purchase of $7,000 of merchandise with terms 4/15,n/60 is recorded by:

When a voucher transaction does not fit in the special columns of the voucher register,it will be recorded in the:

After Sally purchased $5,000 of merchandise from Bob,Sally discovered $500 of defective merchandise.Record the entry for the return.The company uses the gross method,the periodic method and the voucher system.

Important control features provided by a voucher system:

Important principles of internal control include:

After Crowe purchased $4,000 of merchandise from Hanks,Crowe discovered $200 of defective merchandise.Record the entry for the return (assume the gross method).The company uses the periodic method and the voucher system.

On October 1,Oak Company purchased $10,000 of merchandise from City Seed Company,terms 2/10,n/30,and prepared voucher #222.Oak paid the invoice on October 15. Required: Prepare journal entries to record the above transactions.Assume Oak uses the net method and the periodic inventory system for recording purchases.

Separation of duties in a voucher system leads to a more effective ________ for the management of cash payments.

Vouchers Payable replaces Accounts Payable in the general ledger.

The voucher register would contain a column for:

The entry to record payment of a voucher,for an invoice after the discount period,under the net method and the periodic inventory system will include:

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement in which the account balance is reported, and in Column 4 the account's nature (permanent/temporary). - Column 1 Column 2 Column 3 Column 4 Cash in bank