Question 1

In a firm that uses special journals,the purchase of merchandise for $2,800,payable in 30 days,plus a freight charge of $140 is recorded in the

Accepted Answer

A)   cash payments journal.
B)   cash receipts journal.
C)   purchases journal.
D)   general journal.E) A) and B)
F) C) and D)

Question 2

Best Value Furniture uses the periodic inventory system to account for its inventory.It purchased $2,000 of goods from its supplier but later returned $400 of the goods due to damage.Best Value would record the return by:

Accepted Answer

A)   debiting Accounts Payable,crediting Purchases
B)   debiting Sales Returns and Allowances,crediting Accounts Receivable
C)   debiting Accounts Payable,crediting Purchases Purchase Returns and Allowances
D)   debiting Purchase Returns and Allowances,crediting Accounts PayableE) All of the above
F) A) and B)

Question 3

At the end of September 2016 and before the purchases journal was posted,selected general ledger account balances for Paper Products were as follows (each account had a normal balance):  The purchases journal had the following totals: Purchases,$19,540;Freight In,$1,225;Accounts Payable,$20,765.
Calculate the ending balance of each of the three accounts after the posting from the purchases journal.Indicate whether each balance is a debit or credit.

Accepted Answer

The answer of At the end of September 2016 and...

Question 4

Nice Guys Apparel received a $200 credit memorandum as an allowance for goods that it returned to one of its suppliers.Identify the statement below that would be correct when posting the transaction.

Accepted Answer

A)   A debit of $200 would be posted to the supplier's account in the accounts payable ledger.
B)   A debit of $200 would be posted to the supplier's account in the accounts receivable ledger.
C)   A credit of $200 would be posted to the Accounts Receivable account in the general ledger.
D)   A credit of $200 would be posted to the Purchases account in the general ledger.E) All of the above
F) A) and D)

Question 5

Each individual entry in the purchases journal is posted to the general ledger at the end of each day.

Accepted Answer

A) True 
 B)False

Question 6

A creditor's account in the accounts payable ledger has a balance of $10,560 as of April 1.After a transaction of $12,800 is posted from the purchases journal and a transaction of $9,200 is posted from the cash payments journal,the balance of the creditor's account on April 30 is:

Accepted Answer

A)   $9,200 debit
B)   $6,960 credit
C)   $14,160 credit
D)   $12,800 debitE) C) and D)
F) A) and D)

Question 7

One of the supplier accounts from the accounts payable ledger for Paragon Video is shown below.Explain each of the entries that have been posted to this supplier's subsidiary ledger account.

Accepted Answer

Mar.12 - Purchased merchandise...

Question 8

On November 30,2016,the general ledger of Hinges and More Hardware,a retail store,showed the following balances: Purchases,$136,750;Freight In,$2,500;Purchases Returns and Allowances,$4,000.
Determine the following:
A)What was the delivered cost of purchases for November?
B)What was the net delivered cost of purchases for November?

Accepted Answer

A)$139,250...

Question 9

The entry to record a purchase of merchandise on credit includes

Accepted Answer

A)   a debit to Purchases and a credit to Accounts Receivable.
B)   a credit to Purchases and a credit to Accounts Payable.
C)   a debit to Accounts Payable and a credit to Purchases.
D)   a debit to Purchases and a credit to Accounts Payable.E) B) and D)
F) None of the above

Exam 8: Accounting for Purchases and Accounts Payable

One of the supplier accounts from the accounts payable ledger for Paragon Video is shown below.Explain each of the entries that have been posted to this supplier's subsidiary ledger account.

Correct Answer
verified
Mar.12 - Purchased merchandise...
View Answer

The entry to record a purchase of merchandise on credit includes

Correct Answer
verified

Nice Guys Apparel received a $200 credit memorandum as an allowance for goods that it returned to one of its suppliers.Identify the statement below that would be correct when posting the transaction.

Correct Answer
verified

Best Value Furniture uses the periodic inventory system to account for its inventory.It purchased $2,000 of goods from its supplier but later returned $400 of the goods due to damage.Best Value would record the return by:

Correct Answer
verified

A creditor's account in the accounts payable ledger has a balance of $10,560 as of April 1.After a transaction of $12,800 is posted from the purchases journal and a transaction of $9,200 is posted from the cash payments journal,the balance of the creditor's account on April 30 is:

Correct Answer
verified

Each individual entry in the purchases journal is posted to the general ledger at the end of each day.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A)$139,250...
View Answer

In a firm that uses special journals,the purchase of merchandise for $2,800,payable in 30 days,plus a freight charge of $140 is recorded in the

Correct Answer
verified

Exam 8: Accounting for Purchases and Accounts Payable

One of the supplier accounts from the accounts payable ledger for Paragon Video is shown below.Explain each of the entries that have been posted to this supplier's subsidiary ledger account.

Correct AnswerverifiedMar.12 - Purchased merchandise...View AnswerShow Answer

The entry to record a purchase of merchandise on credit includes

Correct AnswerverifiedShow Answer

Nice Guys Apparel received a $200 credit memorandum as an allowance for goods that it returned to one of its suppliers.Identify the statement below that would be correct when posting the transaction.

Correct AnswerverifiedShow Answer

Best Value Furniture uses the periodic inventory system to account for its inventory.It purchased $2,000 of goods from its supplier but later returned $400 of the goods due to damage.Best Value would record the return by:

Correct AnswerverifiedShow Answer

A creditor's account in the accounts payable ledger has a balance of $10,560 as of April 1.After a transaction of $12,800 is posted from the purchases journal and a transaction of $9,200 is posted from the cash payments journal,the balance of the creditor's account on April 30 is:

Correct AnswerverifiedShow Answer

Each individual entry in the purchases journal is posted to the general ledger at the end of each day.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedA)$139,250...View AnswerShow Answer

In a firm that uses special journals,the purchase of merchandise for $2,800,payable in 30 days,plus a freight charge of $140 is recorded in the

Correct AnswerverifiedShow Answer

Correct Answer
verified
Mar.12 - Purchased merchandise...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A)$139,250...
View Answer

Correct Answer
verified