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.5 transaction.

If merchandise was bought for Cash,the same entry would be made on the company's books regardless of the type of inventory method is used.

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.

A debit memorandum increases which account on the buyer's books?

Purchases Discount:

If the company uses special journals,all payments should be recorded on a:

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

When using a perpetual inventory method,what account(s)must be updated when a sale is recognized?

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.3 transaction.

Returned merchandise under the periodic inventory method.This will be recorded with:

The entry to record a purchase of $5,000 on account,terms of 2/10,n/30,would include a:

On February 12,Clare purchased $400 of merchandise on account from Larsen's Accessories,terms 2/10,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:

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 invoice.

To prove the subsidiary ledger agrees with the Accounts Payable controlling account balance,complete a:

Determine the total cost of a purchase paid for within the discount period with an invoice price of $7,000 and credit terms of 2/10,n/30 when $1,500 has already been returned for credit.The goods were purchased with freight terms of F.O.B shipping point and freight of $50. $ ________

On September 6,Mark purchased merchandise for his electric store.The invoice was for $35,000 plus freight of $750,terms 2/15,n/30.The freight was included on the invoice.On September 10,Mark returned merchandise for $5,000 credit.On September 19,Mark paid the amount owed.Fill in the blanks below. a)The credit to Accounts Payable on September 6 is ________. b)The debit to Freight-In on September 6 is ________. c)The debit to Accounts Payable on September 10 is ________. d)The credit to Purchases Discount on September 19 is ________. e)The credit to Cash on September 19 is ________.

Returned merchandise for credit on account.The perpetual inventory system is in use.This will be recorded with:

A characteristic of Purchases is:

The Accounts Receivable and Accounts Payable are both controlling accounts.