Exam 10: Purchases and Cash Payments

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

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, and in Column 3 the financial statement that the account in which the account balance is reported. - Column 1 Column 2 Column 3 Freight-In

The accounts payable subsidiary ledger should equal the control account in the general ledger.

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

The entry to record a payment on a $600 account within the 2% discount period would include a:

Purchased office supplies on account.This will be recorded with:

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, and in Column 3 the financial statement that the account in which the account balance is reported. - Column 1 Column 2 Column 3 Owner's Capital

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. June 16 Purchased merchandise having a price of $\$ 6,000$ from the Shelby Manufacturing Co. on account with credit terms $10 , \mathrm { n } / 30$ . Transportation terms F.O.B destination. June 16 Purchased merchandise having a price of $\$ 9,000$ from the Ajax Supply House on account with credit terms $2 / 10 , \mathrm { n } / 30$ . Transportation terms F.O.B shipping point. The freight costs were $\$ 175$ . June 17 Received the goods from Shelby. June 17 Received the goods from Ajax. June 20 Returned for credit merchandise with an invoice price of $\$ 800$ to Ajax. June 25 Paid Shelby the amount owed. June 28 Paid Ajax the amount owed. June 30 Returned for cash, merchandise with an invoice price of $\$ 400$ to Shelby. -Prepare the necessary general journal entry for June 17,Received the goods from Shelby.

A receiving report is used to notify the company of the quantity and condition of the goods received.

Medeco bought goods for $250 on credit.Medeco returned $50 worth of goods.Terms of the sale were 2/10,n/30.If Medeco pays the amount owed within the discount period,what is the amount they should pay?

Which of the following transactions will cause a liability to be credited and a cost account to be debited when the periodic inventory system is in use?

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, and in Column 3 the financial statement that the account in which the account balance is reported. - Column 1 Column 2 Column 3 Purchases Discounts

Determine the amount of credit 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. $ ________

A list of creditors with balances owed is called:

The term F.O.B.means:

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, and in Column 3 the financial statement that the account in which the account balance is reported. - Sales Column 1 Column 2 Column 3

Purchase Discounts are taken on:

A purchase discount was recorded as a credit to the Purchases account and a debit to Accounts Payable.This error will cause:

Clothes' R Us bought some new clothes for its fashion line and is required to pay the freight costs.The freight terms are:

Returned merchandise paid for within the discount period for a Cash refund.This will be recorded with: