ACNT1303002

An Invoice Approval Form has all of the following EXCEPT​ a(n) ________.

Approval date.

Shoes Plus bought some new shoes for its fashion line and is required to pay the freight costs. The freight terms​ are:

F.O.B. shipping point.

A buyer uses the perpetual inventory system for merchandise purchases. A debit memorandum decreases which account on the​ buyer's books?

Merchandise Inventory

If a display rack was purchased on account for a retail​ store, which of the following accounts would be​ increased?

Store Equipment

Under the perpetual inventory​ system, the normal balance for Merchandise Inventory​ is:

a debit.

When the term F.O.B. shipping point is​ used, title​ passes:

when goods are shipped and leave the​ seller's place of business.

A debit memorandum decreases which account on the​ buyer's books?

Accounts Payable

A characteristic of Merchandise Inventory​ is:

All of the above: it decreases for the buyer when merchandise returned, it has a normal debit balance, and it is an asset.

In the perpetual inventory​ system, freight charges added to the​ buyer's invoice are debited to​ ________ for the buyer.

Merchandise Inventory

Joy Company uses the perpetual inventory system. When merchandise is bought for resale on​ account, which of the following accounts would be​ increased?

Merchandise Inventory

Supplies are​ a(n):

asset

Under the perpetual inventory​ system, Merchandise Inventory is what type of​ account?

asset

A company uses the perpetual inventory system. When merchandise is bought for resale with​ cash, which of the following accounts would be​ decreased?

cash

Tim returned​ $600 of​ merchandise, purchased on​ account, before he paid for the merchandise. Tim uses the perpetual inventory system. The entry to record the return is​ to:

debit Accounts Payable for​ $600; credit Merchandise Inventory for​ $600.

We Company purchased Merchandise Inventory on account for​ $5,000. The seller paid freight charges of​ $50 with terms F.O.B. shipping​ point, and added the​ $50 to the sales invoice. We Company uses the perpetual inventory system. The journal entry for the transaction would​ be:

debit Merchandise Inventory for​ $5,050; credit Account Payable for​ $5,050