Question 1

When the sales department needs goods, it sends the purchasing department a form called:

Accepted Answer

A) a sales invoice. 
B) a purchase requisition. 
C) a purchase order. 
D) a purchase invoice. 
A) a sales invoice. 
B) a purchase requisition. 
C) a purchase order. 
D) a purchase invoice. B

Question 2

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.

Accepted Answer

Dec. 10 - Purchased merchandise in the amount of $3,000 on credit.
Dec. 15 - Purchase return or allowance in the amount of $400 as per CM 810 received from vendor.
Dec. 20 - Paid $7,100 of cash on account.

Question 3

Purchases of supplies on credit that are to be used in the business are entered in:

Accepted Answer

A) the cash receipts journal. 
B) the general journal. 
C) the cash payments journal. 
D) the purchases journal. 
A) the cash receipts journal. 
B) the general journal. 
C) the cash payments journal. 
D) the purchases journal. B

Question 4

Individual creditor's accounts in the accounts payable subsidiary ledger normally have ________ balances.

Accepted Answer

The answer of Individual creditor's accounts in the accounts payable...

Question 5

For each of the transactions listed below, identify the journal that should be used to record the transaction. Use CR for cash receipts journal, CP for cash payments journal, S for sales journal, P for purchases journal, and G for general journal.
A)Issued a check to a supplier as a payment on account.
B)Received an allowance for some merchandise that was slightly damaged but can be sold at a reduced price. Received a credit memorandum.
C)Returned some damaged merchandise to a supplier and received a credit memorandum.
D)Purchased merchandise with terms of net 30 days.
E) Purchased merchandise with terms of 2/10, n/30. The supplier's invoice includes a freight charge.

Accepted Answer

(A) CP, (B

Question 6

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 7

During March a firm purchased $36,500 of merchandise and paid freight charges of $5,280. If the net delivered cost of purchases at the end of March is $33,080, what is the total purchase returns for March?

Accepted Answer

A) $8,700 
B) $3,420 
C) $1,860 
D) $0 
A) $8,700 
B) $3,420 
C) $1,860 
D) $0

Question 8

A bill received for goods purchased

Accepted Answer

A) Cost of goods sold 
B) Freight In account 
C) Purchase allowance 
D) Purchase invoice 
E) Purchase order
F)Purchase requisition
G)Purchase return
H)Purchases account
I)Purchases discount
J)Purchases journal
K)Receiving report
L)Sales discount
M)Sales invoice
N)Schedule of accounts payable 
A) Cost of goods sold 
B) Freight In account 
C) Purchase allowance 
D) Purchase invoice 
E) Purchase order
F)Purchase requisition
G)Purchase return
H)Purchases account
I)Purchases discount
J)Purchases journal
K)Receiving report
L)Sales discount
M)Sales invoice
N)Schedule of accounts payable

Question 9

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

Question 10

When an accounts payable subsidiary ledger is used, the entry to Accounts Payable requires two posting references in the general journal.

Accepted Answer

A) True 
 B)False

Question 11

The Fast Frame Shop had the following transactions for the month of January 2019. 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.
 
14 Returned defective frames to Murphy Company and received Credit Memorandum 103 for $50. The frames were originally purchased on Invoice 454 of January 3.
15 Purchased mats for $400 from Wilson Company Products, Invoice 299, dated January 11, net payable in 30 days.
22 Received Credit Memorandum 496 for $150 from Gunther Glass. The amount is an allowance for slightly discolored but usable glass purchased on Invoice 566 of January 5.

Accepted Answer

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

Question 12

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

Accepted Answer

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

Question 13

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

Accepted Answer

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

Question 14

The type of account and normal balance of Purchase Returns and Allowances is a(n):

Accepted Answer

A) contra revenue account, credit balance. 
B) contra cost of goods sold account, credit balance. 
C) expense account, credit balance. 
D) asset account, debit balance. 
A) contra revenue account, credit balance. 
B) contra cost of goods sold account, credit balance. 
C) expense account, credit balance. 
D) asset account, debit balance.

Question 15

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

Accepted Answer

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

Question 16

Tune Tones Instrument Tuning Company owes Mandy Lynn's Music Studio $5,280 as of November 1. During November Tune Tones purchased merchandise from Mandy Lynn totaling
$10,180 and made payments on account to Mandy Lynn in the amount of $6,300. The amount Tune Tones owes Mandy Lynn on November 30 is:

Accepted Answer

A) $10,180 
B) $11,580 
C) $9,160 
D) $5,280 
A) $10,180 
B) $11,580 
C) $9,160 
D) $5,280

Question 17

If a company uses a perpetual inventory system when recording its purchases and sales of inventory, the entry to record the freight charges on a purchase of merchandise on account would include:

Accepted Answer

A) a debit to Merchandise Inventory and a credit to Accounts Payable 
B) a debit to Cost of Goods Sold and a credit to Merchandise Inventory 
C) a debit to Accounts Payable and a credit to Merchandise Inventory 
D) a debit to Merchandise Inventory and a credit to Cost of Goods Sold 
A) a debit to Merchandise Inventory and a credit to Accounts Payable 
B) a debit to Cost of Goods Sold and a credit to Merchandise Inventory 
C) a debit to Accounts Payable and a credit to Merchandise Inventory 
D) a debit to Merchandise Inventory and a credit to Cost of Goods Sold

Question 18

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

Accepted Answer

Dr. Purchases $4,095

Question 19

For each of the transactions listed below, select the journal that should be used to record the transaction. Use CR for cash receipts journal, CP for cash payments journal, S for sales journal, P for purchases journal, and G for general journal.
-Received an allowance for some merchandise that was slightly damaged but can be sold at a reduced price. Received a credit memorandum.

Accepted Answer

A) CR for cash receipts journal 
B) CP for cash payments journal 
C) S for sales journal 
D) P for purchases journal 
E) G for general journal. 
A) CR for cash receipts journal 
B) CP for cash payments journal 
C) S for sales journal 
D) P for purchases journal 
E) G for general journal.

Question 20

On June 30, 2019, the general ledger of the Shoe Closet, a retail store, showed the following balances: Purchases $19,000; Freight In, $500; Purchases Returns and Allowances, $900.
Determine the following:
A)What was the delivered cost of purchases for June?
B)What was the net delivered cost of purchases for June?

Accepted Answer

A) $19,500

Exam 8: Accounting for Purchases and Accounts Payable

When the sales department needs goods, it sends the purchasing department a form called:

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.

Purchases of supplies on credit that are to be used in the business are entered in:

Individual creditor's accounts in the accounts payable subsidiary ledger normally have ________ balances.

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

During March a firm purchased $36,500 of merchandise and paid freight charges of $5,280. If the net delivered cost of purchases at the end of March is $33,080, what is the total purchase returns for March?

A bill received for goods purchased

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

When an accounts payable subsidiary ledger is used, the entry to Accounts Payable requires two posting references in the general journal.

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

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

The type of account and normal balance of Purchase Returns and Allowances is a(n):

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

Tune Tones Instrument Tuning Company owes Mandy Lynn's Music Studio $5,280 as of November 1. During November Tune Tones purchased merchandise from Mandy Lynn totaling $10,180 and made payments on account to Mandy Lynn in the amount of $6,300. The amount Tune Tones owes Mandy Lynn on November 30 is:

If a company uses a perpetual inventory system when recording its purchases and sales of inventory, the entry to record the freight charges on a purchase of merchandise on account would include:

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

Accounting: The Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and Teh Postclosing Trial Balance

Accounting for Sales and Accounts Receivable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analysis

The Statement of Cash Flows

Departmentalized Profit and Cost Centers

Accounting for Manufacturing Activities

Job Order Cost Accounting

Process Cost Accounting

Controlling Manufacturing Costs: Standard Costs

Cost-Revenue Analysis for Decision Making

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