Exam 10: Purchases and Cash Payments

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 25. __________________________________________ __________ __________ __________________________________________ __________ __________ __________________________________________ __________ __________

The shipping paid on goods purchased F.O.B. Shipping Point was not recorded. This error will cause:

Discounts are taken on:

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

The seller's sales invoice is the buyer's purchase order.

A purchase of merchandise inventory for cash:

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

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

Supplies is a(n):

When merchandise is bought for resale, which of the following accounts would be increased?

A form used in business to place an order for the buying of goods from a seller is:

Bob's Restoration purchased merchandise inventory of $67,000. If Bob returned merchandise inventory of $12,000 and was able to take a discount of 4%, what is the total amount owed?

The account Freight-In accumulates the shipping costs to the seller.

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

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

The Schedule of Accounts Payable is listed by highest to lowest dollar value.

Determine the amount of credit (or cash refund) to be earned on a full return of merchandise purchased with an invoice price of $5,000 and credit terms of 2/10, n/30 when full payment was made within the discount period. $ ________

Shoes Plus bought some new shoes for its fashion line and is required to pay the freight costs. The freight terms are:

On February 12, Clare purchased $490 of merchandise on account from Larsen's Accessories, terms 5/10, 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: (Round your calculation to the nearest whole dollar.)

When merchandise is bought for resale with cash, which of the following accounts would be decreased?