Exam 23: The Voucher System

The primary difference between the gross method and the net method of recording invoices is:

A schedule of vouchers payable is prepared from the check register.

Crane Printing purchased $5,000 of supplies from Paper Wholesale,terms 2/10,n/30 on July 25,and prepared voucher #611.Crane paid the voucher on July 31. Required: Prepare journal entries to record the above transactions assuming Crane uses the net approach method for recording purchases.

Items are listed in the voucher register in the order liabilities are incurred.

Separation of duties in a voucher system leads to a more effective ________ for the management of cash payments.

Vouchers are recorded in the voucher register as they are paid.

A company uses the gross method of recording purchases.An invoice was paid after the discount date.The full amount of the invoice would be recorded in the:

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). - Column 1 Column 2 Column 3 Column 4 Discounts lost

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 entry would be to:

Given the following accounts: [1]Cash in bank [2]Petty cash [3]Supplies [4]Equipment [5]Notes payable [6]Vouchers payable [7]FICA payable [8]Wages payable [9]Purchases [10]Purchase discounts [11]Discounts lost [12]Repairs exp [13]Interest expense [14]Delivery expense Indicate the account(s) to be debited and credited to record the following transactions. -Received an invoice in the amount of $80 for repairs to the store equipment,voucher #423 was prepared. Debit ________ & ________ & ________ Credit ________ & ________ & ________

The Discount Lost account is used when the gross method is used for recording invoices.

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

Using the gross method approach,record the payment of the following transaction in time to take the discount.Clip Company bought $6,500 of merchandise,terms 2/15,n/45: