Exam 10: Purchases and Cash Payments

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On October 6, Mark purchased merchandise for his electric store. The invoice was for $40,000 plus freight of $850, 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 Merchandise Inventory on October 6 is . c) The debit to Accounts Payable on October 10 is . d) The credit to Merchandise Inventory on October 19 is . e) The credit to Cash on October 19 is .

(Short Answer)

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Question 101

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

(True/False)

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Question 102

Jim's Accessories bought 150 necklaces for $40 each on account. Payment terms are 5/10, n/30. In addition, 14 necklaces were returned prior to payment. The entry to record the return would include:

(Multiple Choice)

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Question 103

Which of the following transactions will cause one asset to be debited and another to be credited when the perpetual inventory system is in use?

(Multiple Choice)

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Question 104

Before paying an invoice, the accounting department must check:

(Multiple Choice)

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Question 105

Sam's Online Service on April 30 has the following transactions: If Sam's pays the invoice in time to receive a 2% discount, what is the amount Sam owes?

(Multiple Choice)

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Question 106

The term F.O.B. means:

(Multiple Choice)

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Question 107

The Merchandise account normally has a credit balance.

(True/False)

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Question 108

The buyer issues a debit memorandum to indicate that a previous purchase amount is being reduced because goods were returned, or an allowance was requested.

(True/False)

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Question 109

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. 7 transaction. __________

(Essay)

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Question 110

Showing 101 - 110 of 110

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

Jim's Accessories bought 150 necklaces for $40 each on account. Payment terms are 5/10, n/30. In addition, 14 necklaces were returned prior to payment. The entry to record the return would include:

Which of the following transactions will cause one asset to be debited and another to be credited when the perpetual inventory system is in use?

Before paying an invoice, the accounting department must check:

Sam's Online Service on April 30 has the following transactions: If Sam's pays the invoice in time to receive a 2% discount, what is the amount Sam owes?

The term F.O.B. means:

The Merchandise account normally has a credit balance.

The buyer issues a debit memorandum to indicate that a previous purchase amount is being reduced because goods were returned, or an allowance was requested.

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

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