Question 1

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

Accepted Answer

The answer of When an accounts payable ledger is used,...

Question 2

Return to the supplier of unsatisfactory goods

Accepted Answer

A)  Cost of goods sold
B)  Freight In account
C)  Purchase allowance
D)  Purchase invoice
E)  Purchase orderF) Purchase requisitionG) Purchase returnH) Purchases accountI) Purchases discountJ) Purchases journalK) Receiving reportL) Sales discountM) Sales invoiceN) Schedule of accounts payable

Question 3

Which of the following statements is not correct?

Accepted Answer

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

Question 4

Freight charges on merchandise purchases should be debited to:

Accepted Answer

A)  the Accounts Payable account.
B)  the Purchases account.
C)  the creditor's account in the subsidiary ledger.
D)  the Freight In account.

Question 5

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

Accepted Answer

Dr. Purchases $5,700...

Question 6

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

Accepted Answer

A)  Cost of goods sold
B)  Freight In account
C)  Purchase allowance
D)  Purchase invoice
E)  Purchase orderF) Purchase requisitionG) Purchase returnH) Purchases accountI) Purchases discountJ) Purchases journalK) Receiving reportL) Sales discountM) Sales invoiceN) Schedule of accounts payable

Question 7

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

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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 10

Which of the following statements is correct?

Accepted Answer

A)  The purchase requisition is the form sent to a supplier to order goods.
B)  The credit terms, 2/10, n/30, allow the customer to take a 2 percent discount if payment is made within 10 days of the invoice, otherwise payment is due in full in 30 days.
C)  To the customer, a supplier's invoice is a purchase order invoice.
D)  The Purchases account is reported as an asset on the balance sheet.

Question 11

A price reduction on a purchase from the amount originally billed

Accepted Answer

A)  Cost of goods sold
B)  Freight In account
C)  Purchase allowance
D)  Purchase invoice
E)  Purchase orderF) Purchase requisitionG) Purchase returnH) Purchases accountI) Purchases discountJ) Purchases journalK) Receiving reportL) Sales discountM) Sales invoiceN) Schedule of accounts payable

Question 12

A supplier's billing document

Accepted Answer

A)  Cost of goods sold
B)  Freight In account
C)  Purchase allowance
D)  Purchase invoice
E)  Purchase orderF) Purchase requisitionG) Purchase returnH) Purchases accountI) Purchases discountJ) Purchases journalK) Receiving reportL) Sales discountM) Sales invoiceN) Schedule of accounts payable

Question 13

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

Accepted Answer

The answer of The entry to record a return of...

Question 14

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.

Accepted Answer

A) True 
 B)False

Question 15

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.

Accepted Answer

(A) CP, (B...

Question 16

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

Accepted Answer

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

Question 17

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 18

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

Accepted Answer

A)  an asset on the balance sheet.
B)  an expense on the income statement.
C)  an expense on the cost of purchases statement.
D)  contra revenue on the income statement.

Question 19

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:

Accepted Answer

A)  $900 credit.
B)  $2,300 debit.
C)  $2,300 credit.
D)  $900 debit.

Question 20

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

Accepted Answer

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

Exam 8: Accounting for Purchases and Accounts Payable

A supplier's billing document

Correct Answer
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Correct Answer
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(A) CP, (B...
View Answer

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

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

Correct Answer
verified

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

Correct Answer
verified

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

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

Correct Answer
verified

Which of the following statements is not correct?

Correct Answer
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Which of the following statements is correct?

Correct Answer
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Return to the supplier of unsatisfactory goods

Correct Answer
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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

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

Correct Answer
verified

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

Correct Answer
verified
Dr. Purchases $5,700...
View Answer

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.

Correct Answer
verified

A price reduction on a purchase from the amount originally billed

Correct Answer
verified

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

Correct Answer
verified

Freight charges on merchandise purchases should be debited to:

Correct Answer
verified

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

Correct Answer
verified

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:

Correct Answer
verified

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

Correct Answer
verified

Exam 8: Accounting for Purchases and Accounts Payable

A supplier's billing document

Correct AnswerverifiedShow Answer

Correct Answerverified(A) CP, (B...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow 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

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

Correct AnswerverifiedShow Answer

Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Return to the supplier of unsatisfactory goods

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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedDr. Purchases $5,700...View AnswerShow Answer

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.

Correct AnswerverifiedShow Answer

A price reduction on a purchase from the amount originally billed

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Freight charges on merchandise purchases should be debited to:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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(A) CP, (B...
View Answer

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

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Dr. Purchases $5,700...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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