Exam 23: The Voucher System

After Crowe purchased $5,000 of merchandise from Hanks, Crowe discovered $300 of defective merchandise. Record the entry for the return (assume the gross method). The company uses the periodic method and the voucher system. D) None of these answers is correct.

A(n) ________ is used for every cash payment made.

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.

A schedule of unpaid vouchers can be prepared from the tickler file at the end of the month.

Written authorizations for cash payments are called vouchers.

Clip Company bought $11,000 of merchandise from Tarpon Corporation, terms 1/10, n/45. Clip Company uses the voucher system and the periodic inventory method. The journal entry to record the payment under the gross method after the discount period would be to:

When a purchase is made under the periodic system, the business will:

The voucher system is a form of internal control.

The voucher register would contain a column for all except:

Paid vouchers may be filed in the paid voucher file according to:

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). -

Given the following accounts: -Paid voucher #426, payment was after the discount period. Debit ________ & ________ Credit ________

To maintain good internal control procedures, the person filing a purchase requisition should not approve the payment.