1. Net purchases are: A) Purchases + Purchases Returns and Allowances. B) Purchases – Purchases Discount – Purchases Returns and Allowances. C) Purchases – Freight – Purchases Returns and Allowances. D) Purchases + Freight-In. 2. Purchases is a(n): A) cost. B) asset. C) liability. D) revenue. 3. A cost account is treated the same as: A) a liability. B) Capital. C) a revenue. D) an expense. 4. Jackie’s Online Service on April 30 has the following account balances: Sales $20,000Sales returns and allowances 2,000Purchases 14,000Freight-In 1,000Purchases Returns and allow. 2,000Purchases Discounts 1,400 Net purchases for the period are: A) $10,600. B) $9,600. C) $12,600. D) $14,000. 5. A characteristic of Purchases Returns and Allowances is: A) it has a normal credit balance. B) it increases when merchandise is returned. C) it decreases cost. D) All of these are correct. 6. Clothes’ R Us bought some new clothes for its fashion line and is required to pay the freight costs. The freight terms are: A) F.O.B. destination. B) F.O.B. shipping point. C) 2/10, n/30. D) None of these are correct. 7. When the term F.O.B. shipping point is used, title passes: A) when goods reach the halfway point. B) when goods reach the destination. C) when goods are shipped. D) when the buyer unpacks the goods. 8. On November 30, Janoch’s Dog Kennel purchased $500 of merchandise on account from the Ganster Company. The goods were shipped F.O.B. shipping point. The freight charge of $40 was paid by Ganster Company and added to the invoice. The amount to record in the Purchases account is: A) $500. B) $540. C) $520. D) $550. 9. The entry to record a purchase of $2,000 on account, terms of 2/10, n/30, would include a: A) debit to Purchases Discount for $40. B) credit to Accounts Payable for $2,000. C) debit to Accounts Payable for $2,000. D) credit to Cash for $2,000. 10. Purchased office supplies on account. This will be recorded with: A) a debit to Accounts Payable and a credit to Supplies. B) a debit to Supplies and a credit to Supplies Expense. C) a debit to Supplies and a credit to Accounts Payable. D) a credit to Supplies and a debit to Purchases. 11. Heidi’s Accessories bought 40 necklaces for $10 each on account. The invoice included a 6% sales tax and payment terms of 2/10, n/30. In addition, 5 necklaces were returned prior to payment. The entry to record the purchase would include: A) a debit to Accounts Payable for $424.00. B) a debit to Accounts Payable for $400.00. C) a debit to Purchases for $424.00. D) a debit to Purchases for $400.00. 12. On February 12, Clare purchased $350 of merchandise on account from Larsen’s Accessories, terms 2/10, n/30. The goods were shipped F.O.B. destination. The freight charge was $40. The amount to be recorded in the Accounts Payable Subsidiary ledger is: A) $343. B) $383. C) $350. D) $390. 13. A debit memorandum decreases which account on the buyer’s books? A) Accounts Payable B) Purchases Returns and Allowances C) Sales Returns and Allowances D) Accounts Receivable 14. The entry to record returned merchandise to Vans Company is: A) debit Purchases Returns and Allowances; credit Accounts Payable in the general ledger. B) debit Accounts Payable; credit Purchases. C) debit Accounts Payable/Vans Company in the accounts payable subsidiary ledger and debit Accounts Payable in the general ledger; credit Purchases Returns and Allowances. D) debit Purchases; credit Accounts Payable. 15. Heidi’s Accessories bought 40 necklaces for $10 each on account. The invoice included a 6% sales tax and payment terms of 2/10, n/30. In addition, 5 necklaces were returned prior to payment. The entry to record the return would include: A) a debit to Accounts Payable for $50.00. B) a debit to Accounts Payable for $53.00. C) a debit to Purchases Returns and Allowances for $50.00. D) a debit to Purchases Returns and Allowances for $53.00. 16. Jackson purchased $400 of goods and received credit terms of 2/10, n/30. How much did he pay if payment was made during the discount period? A) $360 B) $408 C) $400 D) $392 17. Medeco bought goods for $150 on credit. Medeco returned $50 worth of goods. Terms of the sale were 2/10, n/30. If Medeco pays the amount owed within the discount period, what is the amount they should pay? A) $97 B) $147 C) $98 D) $148 18. Using the perpetual inventory system, the purchase of merchandise on account would include a: A) debit to Merchandise Inventory and a credit to Accounts Payable. B) debit to Accounts Payable and a credit to Merchandise Inventory. C) debit to Accounts Receivable and a credit to Sales. D) debit to Sales and a credit to Accounts Receivable. 19. The return of merchandise to the supplier for credit using the perpetual inventory system would include a: A) debit to Accounts Receivable and a credit to Accounts Payable. B) debit to Accounts Payable and a credit to Merchandise Inventory. C) debit to Merchandise Inventory and a credit to Accounts Payable. D) debit to Accounts Payable and a credit to Purchases Returns and Allowances. 20. The account used in perpetual inventory to record the cost of inventory used to make the sale is: A) Purchases. B) Purchases Returns and Allowances. C) Purchases Discounts. D) Cost of Goods Sold.
Our customer is the center of what we do and thus we offer 100% original essays..
By ordering our essays, you are guaranteed the best quality through our qualified experts.All your information and everything that you do on our website is kept completely confidential.
Academicwritingcompany.com always strives to give you the best of its services. As a custom essay writing service, we are 100% sure of our services. That is why we ensure that our guarantee of money-back stands, alwaysRead more
The paper that you order at academicwritingcompany.com is 100% original. We ensure that regardless of the position you are, be it with urgent deadlines or hard essays, we give you a paper that is free of plagiarism. We even check our orders with the most advanced anti-plagiarism software in the industry.Read more
The Academicwritingcompany.com thrives on excellence and thus we help ensure the Customer’s total satisfaction with the completed Order.To do so, we provide a Free Revision policy as a courtesy service. To receive free revision the Academic writing Company requires that the you provide the request within Fifteen (14) days since the completion date and within a period of thirty (30) days for dissertations and research papers.Read more
With Academicwritingcompan.com, your privacy is the most important aspect. First, the academic writing company will never resell your personal information, which include credit cards, to any third party. Not even your lecturer on institution will know that you bought an essay from our academic writing company.Read more
The academic writing company writers know that following essay instructions is the most important part of academic writing. The expert writers will, therefore, work extra hard to ensure that they cooperate with all the requirements without fail. We also count on you to help us provide a better academic paper.Read more