Chapter 9 Accounting

question

Which of the following statements is correct?
answer

To record a cash purchase of merchandise, the accountant would debit Purchases and credit Cash.
question

To record the payment of a purchase invoice when a cash discount is taken, the accountant would
answer

debit Accounts Payable, credit Purchases Discounts, and credit Cash.
question

The entry to replenish a petty cash fund includes
answer

debits to various expense accounts and a credit to Cash.
question

The most appropriate form of endorsement of a check for business purposes is
answer

the restrictive endorsement.
question

On a bank reconciliation statement, you would find all of the following except
answer

a list of canceled checks.
question

A firm’s bank reconciliation statement shows a book balance of $15,820, an NSF check of $400, and a service charge of $20. Its adjusted book balance is
answer

$15,400.
question

A firm’s bank reconciliation statement shows a book balance of $31,640, an NSF check of $800, and a service charge of $40. Its adjusted book balance is
answer

$30,800.
question

To arrive at an accurate balance on a bank reconciliation statement, outstanding checks should be
answer

deducted from the bank statement balance.
question

Merchandise costing $5,600 with terms of 1/10, n/30, with transportation costs of $320 included on the invoice (not included in the $5,600) is sold on account. If the bill is paid within ten days, the amount of the purchase discount is.
answer

$56.00.
question

Beckett Co. sold merchandise on account for $10,600, terms 2/10, n/30. Freight charges of $250 were prepaid by the seller and added to the invoice. The customer returned $800 of merchandise before making the payment then paid the invoice within the discount period. What is the amount Beckett Co. received?
answer

$9,854
question

Merchandise is sold for $8,820, terms 1/10, n/30. Prior to payment, the customer returned $560 of the merchandise. If the invoice is paid within the discount period the amount of the sales discount is:
answer

$82.60

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