Exam 8: Accounting for Purchases and Accounts Payable

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.

Which of the following statements is not correct?

Which of the following statements is correct?

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

A special journal used to record the purchase of goods on credit

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.

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

After a supplier of merchandise is selected, the purchasing department issues a form called:

The amount of the purchases for a period is presented as:

After damaged goods are ________, the supplier issues a(n)credit memorandum.

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. Purchased merchandise; the supplier's invoice, which includes a freight charge, has payment terms of 2/10, n/30. C. Returned some damaged merchandise to a supplier and received a credit memorandum. D. Received an allowance for some merchandise that was slightly damaged but can be sold at a reduced price; received a credit memorandum. E. Purchased merchandise with terms of net 30 days.

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

A price reduction on a purchase from the amount originally billed

Return to the supplier of unsatisfactory goods

Freight charges on merchandise purchases should be debited to:

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:

The Purchases Returns and Allowances account has a normal debit balance.

When an accounts payable ledger is used, the Accounts Payable account in the general ledger becomes a(n)--------account.

A creditor's account in the accounts payable ledger has a $1,600 beginning balance. After a transaction for $700 is posted from the purchases journal, the balance of the creditor's account is:

A supplier's billing document