FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 8: Accounting for Purchases and Accounts Payable

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Multiple Choice

Review LaterAdd Note

Review Later

Tune Tones Instrument Tuning Company owes Mandy Lynn's Music Studio $4,856 as of November 1. During November Tune Tones purchased merchandise from Mandy Lynn totaling $8,495 and made payments on account to Mandy Lynn in the amount of $7,250. The amount Tune Tones owes Mandy Lynn on November 30 is:

A) $6,101
B) $3,611
C) $10,889
D) $7,250

E) A) and B)
F) All of the above

Correct Answer

verified

Show Answer

Question 22

Short Answer

Review LaterAdd Note

Review Later

On November 30, 2013, 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?

Correct Answer

verified

A) $139,25...

View Answer

Show Answer

Question 23

Multiple Choice

Review LaterAdd Note

The amount of the purchases for a period is presented in

A firm had purchases of $16,200, freight charges of $300, and purchases returns and allowances of $1,100 during one month. Its net delivered cost of purchases was

The entry to record a return of merchandise purchased on credit includes a debit to the ____________________ account in the general ledger.

The purchases journal for Wright Company is shown below. Describe how the amounts would be posted to the general ledger accounts.

Match the accounting terms with the description by entering the proper letter in the space provided.

Hugh Snow returned merchandise to Farley Co. The entry on Hugh Snow's books to record the return of merchandise to Farley Co. would include a:

Check marks next to the individual amounts in the purchases journal mean that the amounts

The entry to record the return of merchandise purchased on credit includes a debit to Accounts Payable and a credit to Purchases Returns and Allowances.

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

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:

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

The supplier's invoice is the source document for a purchase on credit transaction.

Credit purchases of supplies that are to be used in the business are entered in

At the end of September 2013 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.

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

If a business uses pre numbered purchase orders, it is not necessary to account for every purchase order.

The journal entry to record the purchase of merchandise on account for $2,750 with freight of $125 prepaid and added to the invoice is:

The purchases journal for Carothers Company is shown below. Describe how the amounts would be posted to the general ledger accounts.