Question 1

Which of the following statements is correct?

Accepted Answer

A)   Freight In is subtracted from Purchases to arrive at delivered cost of purchases.
B)   Another name that may be used for the Freight In account is "Transportation In."
C)   Freight charges that are listed on the invoice received from a supplier are not part of the total credit to Accounts Payable to record the credit purchase.
D)   The Freight In account is subtracted from Sales to get Net Sales.E) B) and C)
F) A) and D)

Question 2

Which of the following accounts has a normal debit balance?

Accepted Answer

A)   Purchases
B)   Purchase Returns
C)   Accounts Payable
D)   SalesE) A) and C)
F) All of the above

Question 3

To record a return of merchandise purchased on credit on the books of the buyer, the accountant would

Accepted Answer

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

Question 4

Purchases of merchandise on credit should be recorded in the ____________________ journal.

Accepted Answer

The answer of Purchases of merchandise on credit should be...

Question 5

In a firm that uses special journals, the receipt of a credit memorandum from a supplier for merchandise that was damaged but can be sold at a reduced price 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) None of the above

Question 6

The Fast Frame Shop had the following transactions for the month of January 2013. Record the transactions on page 7 of a purchases journal and page 9 of a general journal. Total, prove, and rule the purchases journal as of January 31.

Accepted Answer

The answer of The Fast Frame Shop had the following...

Question 7

A list of creditors and the balances owed to them is called a schedule of ____________________.

Accepted Answer

The answer of A list of creditors and the balances...

Question 8

In a firm that uses special journals, the purchase of merchandise with terms of 2/10, n/30 is recorded in the

Accepted Answer

A)   cash payments journal.
B)   cash receipts journal.
C)   purchases journal.
D)   general journal.E) None of the above
F) A) and C)

Question 9

The accounts payable ledger for Dora's Dollar Shop is shown below. Prepare a schedule of accounts payable as of March 31, 2013.

Accepted Answer

The answer of The accounts payable ledger for Dora's Dollar...

Question 10

The source document for recording a purchase of merchandise on credit is

Accepted Answer

A)   the purchase order.
B)   the purchase invoice.
C)   the receiving report.
D)   the purchase requisition.E) A) and D)
F) A) and C)

Question 11

Explain each of the following credit terms.
A) n/30
B) n/10 EOM
C) 2/10, n/30
D) 1/10, n/20
E) 3/5, n/30

Accepted Answer

A) Net amount of the invoice is due 30 d...

Question 12

At the end of February 2013 and before the purchases journal was posted, selected general ledger account balances for Volter Repair Services were as follows (each account had a normal balance):  The purchases journal had the following totals: Purchases, $28,000; Freight In, $1,000; Accounts Payable, $29,000.
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 February 2013 and...

Question 13

Since they are liability accounts, creditor's accounts in the accounts payable ledger normally have ____________________ balances.

Accepted Answer

The answer of Since they are liability accounts, creditor's accounts...

Question 14

The discounts that are offered by suppliers to encourage quick payment of invoices by customers are known as ____________________ discounts.

Accepted Answer

The answer of The discounts that are offered by suppliers...

Question 15

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) A) and C)
F) C) and D)

Question 16

After damaged goods are returned, the supplier issues a(n) ____________________ memorandum.

Accepted Answer

The answer of After damaged goods are returned, the supplier...

Question 17

Postings to the accounts payable ledger should be made

Accepted Answer

A)   daily.
B)   weekly.
C)   monthly.
D)   at the end of the fiscal period.E) A) and B)
F) A) and C)

Question 18

Which of the following statements is not correct?

Accepted Answer

A)   Cash purchases of merchandise are not recorded in the purchases journal.
B)   A credit purchase of equipment for use in the business would be recorded in the purchases journal.
C)   The Purchases account has a normal debit balance.
D)   The invoice date and credit terms must be carefully recorded in the purchases journal because they determine when payment is due.E) B) and C)
F) A) and B)

Question 19

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 in the a...

Question 20

In a firm that uses special journals, the purchase of merchandise for cash is recorded in the

Accepted Answer

A)   cash payments journal.
B)   cash receipts journal.
C)   purchases journal.
D)   general journal.E) B) and C)
F) All of the above

Exam 8: Accounting for Purchases and Accounts Payable

A list of creditors and the balances owed to them is called a schedule of ____________________.

Correct Answer
verified

Explain each of the following credit terms. A) n/30 B) n/10 EOM C) 2/10, n/30 D) 1/10, n/20 E) 3/5, n/30

Correct Answer
verified
A) Net amount of the invoice is due 30 d...
View Answer

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 in the a...
View Answer

The accounts payable ledger for Dora's Dollar Shop is shown below. Prepare a schedule of accounts payable as of March 31, 2013.

Correct Answer
verified

The discounts that are offered by suppliers to encourage quick payment of invoices by customers are known as ____________________ discounts.

Correct Answer
verified

Since they are liability accounts, creditor's accounts in the accounts payable ledger normally have ____________________ balances.

Correct Answer
verified

Purchases of merchandise on credit should be recorded in the ____________________ journal.

Correct Answer
verified

Which of the following accounts has a normal debit balance?

Correct Answer
verified

Which of the following statements is correct?

Correct Answer
verified

In a firm that uses special journals, the purchase of merchandise for cash is recorded in the

Correct Answer
verified

Which of the following statements is not correct?

Correct Answer
verified

The Fast Frame Shop had the following transactions for the month of January 2013. Record the transactions on page 7 of a purchases journal and page 9 of a general journal. Total, prove, and rule the purchases journal as of January 31.

Correct Answer
verified

The source document for recording a purchase of merchandise on credit is

Correct Answer
verified

The entry to record a purchase of merchandise on credit includes

Correct Answer
verified

To record a return of merchandise purchased on credit on the books of the buyer, the accountant would

Correct Answer
verified

After damaged goods are returned, the supplier issues a(n) ____________________ memorandum.

Correct Answer
verified

Postings to the accounts payable ledger should be made

Correct Answer
verified

In a firm that uses special journals, the receipt of a credit memorandum from a supplier for merchandise that was damaged but can be sold at a reduced price is recorded in the

Correct Answer
verified

In a firm that uses special journals, the purchase of merchandise with terms of 2/10, n/30 is recorded in the

Correct Answer
verified

Correct Answer
verified

Exam 8: Accounting for Purchases and Accounts Payable

A list of creditors and the balances owed to them is called a schedule of ____________________.

Correct AnswerverifiedShow Answer

Explain each of the following credit terms. A) n/30 B) n/10 EOM C) 2/10, n/30 D) 1/10, n/20 E) 3/5, n/30

Correct AnswerverifiedA) Net amount of the invoice is due 30 d...View AnswerShow Answer

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 in the a...View AnswerShow Answer

The accounts payable ledger for Dora's Dollar Shop is shown below. Prepare a schedule of accounts payable as of March 31, 2013.

Correct AnswerverifiedShow Answer

The discounts that are offered by suppliers to encourage quick payment of invoices by customers are known as ____________________ discounts.

Correct AnswerverifiedShow Answer

Since they are liability accounts, creditor's accounts in the accounts payable ledger normally have ____________________ balances.

Correct AnswerverifiedShow Answer

Purchases of merchandise on credit should be recorded in the ____________________ journal.

Correct AnswerverifiedShow Answer

Which of the following accounts has a normal debit balance?

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

In a firm that uses special journals, the purchase of merchandise for cash is recorded in the

Correct AnswerverifiedShow Answer

Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

The Fast Frame Shop had the following transactions for the month of January 2013. Record the transactions on page 7 of a purchases journal and page 9 of a general journal. Total, prove, and rule the purchases journal as of January 31.

Correct AnswerverifiedShow Answer

The source document for recording a purchase of merchandise on credit is

Correct AnswerverifiedShow Answer

The entry to record a purchase of merchandise on credit includes

Correct AnswerverifiedShow Answer

To record a return of merchandise purchased on credit on the books of the buyer, the accountant would

Correct AnswerverifiedShow Answer

After damaged goods are returned, the supplier issues a(n) ____________________ memorandum.

Correct AnswerverifiedShow Answer

Postings to the accounts payable ledger should be made

Correct AnswerverifiedShow Answer

In a firm that uses special journals, the receipt of a credit memorandum from a supplier for merchandise that was damaged but can be sold at a reduced price is recorded in the

Correct AnswerverifiedShow Answer

In a firm that uses special journals, the purchase of merchandise with terms of 2/10, n/30 is recorded in the

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
A) Net amount of the invoice is due 30 d...
View Answer

Correct Answer
verified
Mar. 12 - Purchased merchandise in the a...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified