Exam 23: The Voucher System

On June 2, Sandoval Corporation purchased $9,000 of merchandise from Johnston Company, terms 3/10, n/30 and prepared voucher #402. Sandoval returned $400 of the supplies on June 8, because of poor quality. Sandoval cancelled voucher #402 and replaced it with #415. Required: Prepare journal entries to record the above transactions. Assume Sandoval uses the net method for recording purchases. Omit explanations. Sandoval uses the periodic method.

Vouchers Payable is not a liability account on the balance sheet.

Which of the following is NOT a part of internal control?

When a voucher is prepared, the invoice needs only to be compared to the purchase requisition, purchase order and receiving report.

Partial payments of an original voucher require new vouchers for each approved payment.

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). -

Emily purchased $2,000 of merchandise on April 1 and recorded it in the voucher register. On April 8, $400 of the merchandise proved to be defective. The company uses the gross method and the periodic inventory system. The entry would be to:

If it is later decided to pay an approved voucher in two payments:

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.

When merchandise is purchased, the entry in the vouchers register is a debit to Merchandise Inventory and a credit to Vouchers Payable. The company uses the periodic method.

Which of the following is the controlling account in the general ledger when using a voucher system?

Booker's Company purchased $6,000 of merchandise with terms of 5/10, n/60 and paid the invoice within the discount period. Brooke uses the periodic and voucher systems. If Booker's uses the net method of recording merchandise purchases, the $300 purchases discount is recorded in:

In the voucher system, the purchases journal is replaced by the:

Which of the following is true of a voucher system?

The entry to record payment of a voucher, for an invoice paid within the discount period, under the net method will include:

A cash discount of $24 taken under the net method is recorded in:

After paying a voucher, the voucher document is marked approved.

A voucher register could contain which of the following columns?

Fixer Supply purchased $5,000 of merchandise, terms 2/10, n/60 on July 2, and prepared voucher #1001. Fixer Supply paid the invoice on August 31. Prepare journal entries to record the above transactions. Assume Fixer Supply uses the gross method and the periodic inventory system for recording purchases. Omit explanations.

Which of the following accounts is used for recording merchandise for resale?