Accounting chapter 10 and 11 quiz

assume the gross amount of an invoice is $100 and a discount of 20% is allowed. The net amount is

$80

An invoice in the amount of $916 is subject to a trade discount of 10% and credit terms on 3/10, n/30. If the invoice is not paid within the discount period, the amount that would be paid to satisfy the invoice would be

$824.40

merchandise is sold on account for $90, and the sale is subject to a retail tax of $5.40. The sales account should be credited for

$90

An invoice in the amount of $916 is subject to a trade discount of 10% and credit terms of 3/10, n/30. The amount of the trade discount would be

$91.60

Merchandise is sold on account for $90, and the sale is subject to a retail sales tax of $6.40. The amount that should be added to Accounts Receivable would be

$96.40

Which of the following credit terms allows a discount of 2% if payment is made within 10 days with the total amount of the invoice due within 60 days?

2/10, n/60

Which of the following credit terms allows a discount of 3% if payment is made within 15 days from the date of the invoice; otherwise, the total amount of the invoice must be paid within 30 days from its date?

3/15, n/30

Assume the gross amount of an invoice is $200 and a trade discount of 10% is allowed. The amount to be entered in the accounting records would be

$180

An invoice of $237.50 dated April 2 is subject to credit terms of 2/10, n/30. The amount to be paid if the invoice is paid on or before April 12 is

$232.75

An invoice of $237.50 dated April 2 is subject to credit terms of 2/10, n/30. If the invoice is paid on April 14, the amount to be paid would be

$237.50

Assume the gross amount of an invoice is $200 and a discount of 20% is allowed. The amount of the trade discount totals

$40

After the posting of the accounts payable ledger is completed, the total of the accounts payable ledger balances should equal the balance of which of the following general ledger accounts?

accounts payable

Which of the following accounts is NOT used to account for merchandise sales transactions?

accounts payable

a record used to keep the amount owed to each supplier is called a(n)

accounts payable ledger

After posting is completed in the accounts receivable ledger and the general ledger, the total of the accounts receivable ledger balances should equal the

accounts receivable account balance

A credit memorandum for $156 (sales price of merchandise, $150; sales tax $6) was issued to a customer for goods returned that had been purchased on account. To enter this transaction properly,

accounts receivable would be credited for $156

(appendix) when the net-price method of recording purchases is used, the debit to purchases is for the

amount of the invoice less available cash discounts

discounts to encourage prompt payment by customers who buy merchandise on account

cash discounts

for the merchant, bank credit sales are treated in a manner similar to

cash sales

a summary accounts receivable account is called a(n)

controlling account

Merchandise inventory available at the beginning of the period plus cost of goods purchased minus merchandise inventory at the end of the period equals

cost of goods sold

If the seller permits merchandise to be returned or an allowance to be made, it is customary for the seller to issue a(n)

credit memorandum

(Appendix) A purchase was made for $200 on account with credit terms of 2/10, n/30. The purchase was recorded using the net-price method. If payment is made 25 days later, the entry to record the payment will be to

debit accounts payable for $196, debit purchases discounts lost for $4, and credit cash for $200

to enter a cash sale, the journal entry includes

debiting cash, crediting sales, and crediting sales tax payable

The entry to record the purchase on account of merchandise for resale under the periodic inventory system includes

debris purchases and crediting accounts payable

a schedule of accounts receivable is prepared from

list of customer accounts in the accounts receivable ledger

A printed price of a manufacturer or wholesaler that is subject to trade discounts is called

list price

a schedule of accounts receivable is normally prepared

monthly

The cost of merchandise purchased during the period less any discounts granted by suppliers and amounts returned to suppliers and amounts of any allowances made by suppliers is called

net purchases

Total sales less the sales price of any goods returned by customers, less any reduction in price given to customers, less cash discounts allowed by the seller, is called

net sales

A written order by a buyer for merchandise or other property specified in a purchase requisition is known as a

purchase order

A form used to request the responsible person or department to purchase merchandise or other property is known as a

purchase requisition

The account in which the revenue earned from the sale of merchandise is entered is

sales

merchandise returned by the customer for a refund is called a

sales return

A customer returns merchandise that was delivered in poor condition and that does not meet specification. The account that the seller would debit for the amount of the return is

sales returns and allowances

The account that would be credited for the amount of tax collected on sales would be

sales tax payable

the source document of a sales transaction is called a

sales ticket

A credit memorandum for $156 (sale price of merchandise $150; sales tax of $6) was issued to a customer for goods returned that had been purchased on account. To enter this transaction properly,

sales would not be debited

a list showing the amount due to each supplier as of specified date is known as the

schedule of accounts payable

a list showing the amount due from each customer as of a specified date is known as

schedule of accounts receivable

A common approach to keeping a record of each customer's accounts receivable is to use a

subsidiary accounts receivable ledger

special discounts from list prices, granted by manufacturers to different classes of customers, are known as

trade discounts

a schedule of accounts receivable is prepared to

verify that the sum of accounts receivable ledger balances equals the accounts receivable balance

A business that purchases clothing, furniture, computers, or other products to sell to other businesses is a

wholesale business

which of the following indicates that the seller must pay all transportation costs?

FOB destination

Which of the following indicates that the purchaser will pay the transportation costs?

FOB shipping point

The account to which transportation charges on incoming merchandise are generally entered is

Freight-in

The terms on an invoice are 4/15, n/30. This means that

a discount of 4% will be allowed if payment is made within 15 days from the date of the invoice.