Question 1

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 2

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 D)
F) C) and D)

Question 3

The journal entry to record the purchase on account of $900 of merchandise with freight of $65 prepaid by their supplier and added to the invoice is:

Accepted Answer

A)   debit Purchases $965;credit Accounts Payable $965
B)   debit Accounts Payable $965,debit Freight in $65;credit Purchases $900
C)   debit Purchases $900,debit Freight In $65;credit Accounts Payable $965
D)   debit Accounts Receivable $965;credit Sales $965E) B) and C)
F) A) and C)

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

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 D)
F) B) and C)

Question 6

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 7

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 in...

Question 8

A firm's accounts payable ledger may include accounts for creditors who are not suppliers of merchandise.

Accepted Answer

A) True 
 B)False

Question 9

Credit purchases of supplies that are to be used in the business are entered in

Accepted Answer

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

Question 10

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

Accepted Answer

A)   contra-revenue account,credit balance.
B)   asset account,debit balance.
C)   contra-cost of goods sold account,credit balance.
D)   expense account,credit balance.E) None of the above
F) B) and D)

Question 11

Match the accounting terms with the description by entering the proper letter in the space provided.

Accepted Answer

(1)I, (2)D...

Question 12

If a business pays $1,100 on account to a creditor,the effect of the payment is a decrease to cash and a(n)

Accepted Answer

A)   decrease to Fees Income.
B)   increase of capital.
C)   increase to accounts receivable.
D)   decrease to accounts payable.E) A) and B)
F) A) and C)

Question 13

One of the supplier accounts from the accounts payable ledger for Thompson Consulting Services is shown below.Explain each of the entries that have been posted to this supplier's subsidiary ledger account.

Accepted Answer

Feb.2 - Purchased merchandise ...

Question 14

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,the...

Question 15

Purchases returns and allowances are recorded in the ____________________ journal if a firm does not have a purchases returns and allowances journal.

Accepted Answer

The answer of Purchases returns and allowances are recorded in...

Question 16

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

Question 17

On April 30,2016,the general ledger of the Danielle's Dress Shop showed the following balances: Purchases $9,000;Freight In,$50;Purchases Returns and Allowances,$90.
Determine the following:
A)What was the delivered cost of purchases for April?
B)What was the net delivered cost of purchases for April?

Accepted Answer

The answer of On April 30,2016,the general ledger of the...

Question 18

Match the accounting terms with the description by entering the proper letter in the space provided.

Accepted Answer

(1)H, (2)K...

Question 19

Music,Inc.uses a periodic inventory system when recording its purchases and sales of inventory.If the business returns $1,000 of damaged goods to its supplier,select the correct entry to record the return:

Accepted Answer

A)  
B)  
C)  
D)  E) B) and C)
F) C) and D)

Question 20

The form sent to the supplier to order goods is called a(n)___________________.

Accepted Answer

The answer of The form sent to the supplier to...

Exam 8: Accounting for Purchases and Accounts Payable

One of the supplier accounts from the accounts payable ledger for Thompson Consulting Services is shown below.Explain each of the entries that have been posted to this supplier's subsidiary ledger account.

Correct Answer
verified
Feb.2 - Purchased merchandise ...
View Answer

A firm's accounts payable ledger may include accounts for creditors who are not suppliers of merchandise.

Correct Answer
verified

Correct Answer
verified

Match the accounting terms with the description by entering the proper letter in the space provided.

Correct Answer
verified
(1)H, (2)K...
View Answer

Which of the following statements is not correct?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

If a business pays $1,100 on account to a creditor,the effect of the payment is a decrease to cash and a(n)

Correct Answer
verified

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

Correct Answer
verified

Music,Inc.uses a periodic inventory system when recording its purchases and sales of inventory.If the business returns $1,000 of damaged goods to its supplier,select the correct entry to record the return:

Correct Answer
verified

The journal entry to record the purchase on account of $900 of merchandise with freight of $65 prepaid by their supplier and added to the invoice is:

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

Purchases returns and allowances are recorded in the ____________________ journal if a firm does not have a purchases returns and allowances journal.

Correct Answer
verified

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

Credit purchases of supplies that are to be used in the business are entered in

Correct Answer
verified

Postings to the accounts payable ledger should be made

Correct Answer
verified

The form sent to the supplier to order goods is called a(n)___________________.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Match the accounting terms with the description by entering the proper letter in the space provided.

Correct Answer
verified
(1)I, (2)D...
View Answer

Exam 8: Accounting for Purchases and Accounts Payable

One of the supplier accounts from the accounts payable ledger for Thompson Consulting Services is shown below.Explain each of the entries that have been posted to this supplier's subsidiary ledger account.

Correct AnswerverifiedFeb.2 - Purchased merchandise ...View AnswerShow Answer

A firm's accounts payable ledger may include accounts for creditors who are not suppliers of merchandise.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Match the accounting terms with the description by entering the proper letter in the space provided.

Correct Answerverified(1)H, (2)K...View AnswerShow Answer

Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If a business pays $1,100 on account to a creditor,the effect of the payment is a decrease to cash and a(n)

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Music,Inc.uses a periodic inventory system when recording its purchases and sales of inventory.If the business returns $1,000 of damaged goods to its supplier,select the correct entry to record the return:

Correct AnswerverifiedShow Answer

The journal entry to record the purchase on account of $900 of merchandise with freight of $65 prepaid by their supplier and added to the invoice is:

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

Purchases returns and allowances are recorded in the ____________________ journal if a firm does not have a purchases returns and allowances journal.

Correct AnswerverifiedShow 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

Credit purchases of supplies that are to be used in the business are entered in

Correct AnswerverifiedShow Answer

Postings to the accounts payable ledger should be made

Correct AnswerverifiedShow Answer

The form sent to the supplier to order goods is called a(n)___________________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Match the accounting terms with the description by entering the proper letter in the space provided.

Correct Answerverified(1)I, (2)D...View AnswerShow Answer

Correct Answer
verified
Feb.2 - Purchased merchandise ...
View Answer

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(1)H, (2)K...
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(1)I, (2)D...
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