Chapter 8 Accounting – Flashcards

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

The entry to record a purchase of merchandise on credit includes

Freight charges on merchandise purchases should be debited to

The Purchases account is

Purchases of merchandise on credit should be recorded in

The source document for recording a purchase of merchandise on credit is

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

When the sales department needs goods, it sends the purchasing department a form called

In a firm that uses special journals, the purchase of merchandise with terms of 2/10, n/30 is recorded in the

In a firm that uses special journals, the return of damaged merchandise to a supplier and receipt of a credit memorandum is recorded in the

In a firm that uses special journals, the issuance of a check to a supplier as a payment on account is recorded in the

In a firm that uses special journals, the purchase of merchandise for $2,800, payable in 30 days, plus a freight charge of $140 is recorded in the

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

In a firm that uses special journals, the purchase of merchandise for cash is recorded in the

Credit terms of 1/10, n/30 mean that

Check marks next to the individual amounts in the purchases journal mean that the amounts

Postings to the accounts payable ledger should be made

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

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

The total of the balances in the individual creditor's accounts should agree with the balance of