Exam 10: Purchases and Cash Payments

Prepare the general journal entry for the May 9 transaction.__________

(Essay)

4.9/5

(78)

Question 41

The term used when the seller is responsible for the cost of freight is:

(Multiple Choice)

4.8/5

(89)

Question 42

On October 6,Mark purchased merchandise for his electric store.The invoice was for $35,000 plus freight of $750,terms 1/15,n/30.The freight was included on the invoice.On October 10,Mark returned merchandise for $5,000 credit.On October 19,Mark paid the amount owed.Fill in the blanks below. a)The credit to Accounts Payable on October 6 is . b)The debit to Freight-In on October 6 is . c)The debit to Accounts Payable on October 10 is . d)The credit to Purchases Discount on October 19 is . e)The credit to Cash on October 19 is .

(Short Answer)

4.8/5

(95)

Question 43

Determine the total cost of a purchase paid for within the discount period with an invoice price of $7,000 and credit terms of 1/10,n/30 when $1,500 has already been returned for credit.The goods were purchased with freight terms of F.O.B shipping point and freight of $50. $ ________

(Short Answer)

4.8/5

(75)

Question 44

The entry to record a payment on a $650 account within the 2% discount period would include a:

(Multiple Choice)

4.8/5

(79)

Question 45

Returned merchandise paid for within the discount period for a Cash refund.This will be recorded with:

(Multiple Choice)

5.0/5

(81)

Question 46

Determine the amount to be paid to the vendor within the discount period for purchase with an invoice price of $3,000 and credit terms of 2/10,n/30 when $500 has already been returned for credit.The goods were purchased with freight terms of F.O.B shipping point and freight of $50 was included on the invoice. $ ________

(Short Answer)

4.7/5

(79)

Question 47

On February 12,Clare purchased $400 of merchandise on account from Larsen's Accessories,terms 2/10,n/30.The goods were shipped F.O.B.destination.The freight charge was $40.The amount to be recorded in the Accounts Payable Subsidiary ledger is:

(Multiple Choice)

4.7/5

(79)

Question 48

Payment for merchandise made before approval is given.

(True/False)

4.9/5

(82)

Question 49

The controlling account is found in the subsidiary ledger for all accounts payable.

(True/False)

4.9/5

(70)

Question 50

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, and in Column 3 the financial statement that the account in which the account balance is reported. - Sales Column 1 Column 2 Column 3

(Essay)

4.8/5

(76)

Question 51

Office Supplies (not used for resale)bought on account were returned for credit and recorded with a debit to Accounts Payable and a credit to Purchase Returns and Allowances.This error will cause:

(Multiple Choice)

4.9/5

(77)

Question 52

The normal balance for Purchases Returns and Allowances is:

(Multiple Choice)

4.8/5

(81)

Question 53

Returned merchandise paid for within the discount period for cash.The perpetual inventory system is in use.This will be recorded with:

(Multiple Choice)

4.8/5

(81)

Question 54

F.O.B.shipping point means:

(Multiple Choice)

4.9/5

(90)

Question 55

If a debit memorandum is issued,the buyer will reduce their accounts receivable.

(True/False)

4.8/5

(73)

Question 56

The return of merchandise to the supplier for credit using the perpetual inventory system would include a:

(Multiple Choice)

4.9/5

(74)

Question 57

The Bixby Co.had the following transactions involving the purchase of merchandise.Prepare the necessary general journal entries.Any applicable freight costs are prepaid by the seller.The perpetual inventory method is in use. -Prepare the necessary general journal entry for June 17.Received the goods from Shelby. __________

(Essay)

4.9/5

(74)

Question 58

Journalize the following transactions.All purchases are on account and subject to terms of 2/10,n/30.The periodic inventory method is used. Nov. 3 Purchased merchandise with a price of $\$ 2,000$ from the Bartkowski Inc. Nov. 5 Purchased merchandise from the Thiesman and Co. with a price of $\$ 4,000$ . Nov. 7 Purchased merchandise with a price of $\$ 2,000$ from the Montana Supply Co. Nov. 10 Paid the amount due to Bartkouski Inc. Nov. 12 Paid the amount due to Thiesman and Co. Nov. 23 Paid the amount due to Montana Supply Co. -Journalize the Nov.3 transaction. __________

(Essay)

4.8/5

(82)

Question 59

The Bixby Co.had the following transactions involving the purchase of merchandise.Prepare the necessary general journal entries.Any applicable freight costs are prepaid by the seller.The perpetual inventory method is in use. -Prepare the necessary general journal entry for June 30. __________

(Essay)

4.8/5

(73)

Question 60

Exam 10: Purchases and Cash Payments

Prepare the general journal entry for the May 9 transaction.__________________________________________ __________ __________ __________________________________________ __________ __________ __________________________________________ __________ __________

The term used when the seller is responsible for the cost of freight is:

Determine the total cost of a purchase paid for within the discount period with an invoice price of $7,000 and credit terms of 1/10,n/30 when $1,500 has already been returned for credit.The goods were purchased with freight terms of F.O.B shipping point and freight of $50. $ ________

The entry to record a payment on a $650 account within the 2% discount period would include a:

Returned merchandise paid for within the discount period for a Cash refund.This will be recorded with:

On February 12,Clare purchased $400 of merchandise on account from Larsen's Accessories,terms 2/10,n/30.The goods were shipped F.O.B.destination.The freight charge was $40.The amount to be recorded in the Accounts Payable Subsidiary ledger is:

Payment for merchandise made before approval is given.

The controlling account is found in the subsidiary ledger for all accounts payable.

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, and in Column 3 the financial statement that the account in which the account balance is reported. - Sales Column 1 Column 2 Column 3

Office Supplies (not used for resale)bought on account were returned for credit and recorded with a debit to Accounts Payable and a credit to Purchase Returns and Allowances.This error will cause:

The normal balance for Purchases Returns and Allowances is:

Returned merchandise paid for within the discount period for cash.The perpetual inventory system is in use.This will be recorded with:

F.O.B.shipping point means:

If a debit memorandum is issued,the buyer will reduce their accounts receivable.

The return of merchandise to the supplier for credit using the perpetual inventory system would include a:

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property,plant,equipment,and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values,dividends,treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

Filters

Prepare the general journal entry for the May 9 transaction.__________