Adv. Accounting

Accounts Payable Subsidiary Ledger

A book that contains in alphabetical order the name of the creditor and the amount owed for purchases on account

Purchase Returns & Allowance

A contra account to the ledger that records the amount of defective merchandise returned

Purchased office supplies on account would be recorded with....

A debit to supplies and a credit to accounts payable

Debit Memorandum

A form issued by a purchaser to a seller indicating that some purchases returns have occured

Purchase Order

A form used in business to place an order for buying goods from a seller

Merchandise Inventory

A perpetual inventory system that records purchases of merchandis

A list of creditors with balances owed is called:

A schedule of accounts payable

Which is the controlling account for the amounts owed to individual creditors?

Accounts payable in the general ledger

Periodic Inventory System

An inventory system that at the end of each account period calculates the cost of unsold goods on hand

Perpetual Inventory System

An inventory system that continually keeps track of each type of inventory

Schedule of accounts payable is a list of customer accounts that owe the company money

False

Cost of Goods Sold

In an perpetual inventory system an account that records the cost of merchandise used to make a sale

Purchases

Merchandise for resale

Is it true that individual amounts are recorded during the month to the accounts payable ledger

No

When Merchandise is bought for resale which account would be increased?

Purchases

Net Purchases are:

Purchases-Purchase Discount-Purchases Returns and Allowances

Controlling Account

The account in the general ledger that summarizes the subsidiary ledger

The normal balance for purchases returns and allowances is?

a credit

Purchases Discount is a?

contra-cost account

Purchases is a?

cost

To prove the subsidiary ledger agrees with the accounts payable controlling account balance, complete a:

debit memorandum

If a debit memorandum is issued the buyer will reduce they're accounts recievable

false

When the terms are F.O.B shipping point the buyer is responsible for the cost of shipping from the seller's shipping point to the purchasers location but the title does not pass until delivered

false

Purchases discounts are to given to the buyer from the supplier for early payment on account

true