Accounting chapter 8 quiz

The purchases returned and allowances account is a:

contra cost of goods sold account with a normal credit balance

which of the following would not be preformed when posting purchases return or allowance to the suppliers account?

enter the amount of return or allowance in the credit column

purchases returns and allowances granted by suppliers are usually entered in the:

general journal

the total on the schedule of accounts payable should agree with:

the balance of the accounts payable account in the general ledger

which of the following statements is correct?

the credit terms, 2/10, n/30, allow the customer to take a 2 percent discount if payment is made within ten days

Which of the following is NOT an effective internal control?

the same individual who ordered the goods should also sign the check to pay for them

which of the following is an objective of internal control of purchases?

to create written proof that purchases and payments are authorized

detail information about the individual accounts for all creditors is provided by:

the account payable subsidiary ledger

A company has the following account balances: purchases, $20,000; $1,000; and purchase returns and allowances, $800. what is the amount of the net delivered cost of purchases?

$20,200

If the accounts payable subsidiary ledger account fro Sam's Textiles displays a beginning balance of $2,000, a purchase of $3,100 and a credit memorandum of $1,400, what is the ending balance for this account?

$3,700

A payment on account to a vendor is recorded in the:

Cash payment journal

The entry to record a return of merchandise purchased on credit includes:

a debut to accounts payable and credit to purchase returns and allowances

the net delivered cost of purchases is calculated as follows:

purchases plus freight in less purchase returns and allowances

which of the following is NOT a column with the purchases journal?

purchases returns and allowances credit

the purchases account is a:

temporary account