Exam 23: The Voucher System

Connect Company bought $4,000 of merchandise from Woods Corporation,terms 3/10,n/30.The journal entry to record the payment under the gross method approach after the discount period would be to:

A voucher system is designed to control a company's:

When there is a return after the original voucher has been prepared,the first step is to cancel the old voucher.

The entry to record the approval of a withdrawal by the owner will include:

Which of the following accounts is used for recording merchandise for resale?

If an account is not paid on time using the net method,the account ________ must be recorded.

Which of the following business documents would not originate with the purchasing company?

A schedule of vouchers payable can be prepared from the tickler file at the end of the month.

Fox Company uses a voucher system.The following transactions were completed: May 3 $\quad$ Purchased $\$ 4,750$ of merchandise; terms $2 / 10 , \mathrm { n } / 30$ $\quad$ $\quad$ $\quad$ Prepared voucher $\# 205$ . May $\quad$ 13 Paid voucher $\# 205$ . Required: Prepare journal entries to record the above transactions.Assume Fox Company uses the gross approach method for recording purchases.Omit explanations.

Carolyn Company purchased $4,500 of merchandise with terms of 4/10,n/60 and paid the invoice within the discount period.If Brooke's uses the net method of recording merchandise purchases,the $180 purchases discount is:

After paying a voucher,the voucher document is marked paid.

A tickler file is the same as the:

If a partial payment is made after the voucher is prepared:

Given the following accounts: [1]Cash in bank [2]Petty cash [3]Supplies [4]Equipment [5]Notes payable [6]Vouchers payable [7]FICA payable [8]Wages payable [9]Purchases [10]Purchase discounts [11]Discounts lost [12]Repairs exp [13]Interest expense [14]Delivery expense Indicate the account(s) to be debited and credited to record the following transactions. -Paid voucher #425,payment was after the discount period. Debit ________ & ________ & ________ Credit ________ & ________ & ________

Using the gross method approach,record the payment of the following transaction in time to take the discount.Connect Company bought $4,000 of merchandise,terms 3/10,n/30:

In a voucher system,the source documents include the invoice,receiving report,purchase order,and purchase requisition.

Emerald Corporation uses a voucher system and completed the following transactions: Dec. 31 $\quad$ Prepared voucher $\# 422$ to replenish the petty cash fund based on the following receipts: supplies $\$ 47$ , postage $\$ 48$ , and cash short $2. 31 $\quad$ $\quad$ Issued check \#1003 in payment of voucher #422. Required: Prepare general journal entries to record the above transactions.Omit explanations.

The Discount Lost account is used when the:

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement in which the account balance is reported, and in Column 4 the account's nature (permanent/temporary). - Column 1 Column 2 Column 3 Column 4 Wages payable

The voucher system strengthens internal control because: