Accounting Chapter 8

To record Return of merch purchased on credit, accountant would:³33

...

Entry to record a purchase of merch on credit includes:

Debit to Purchases and credit to A/P

Balance circled in a/p Ledger is credit balance

False

Credit purchase of equip is recorded in purchases journal

False

Freight in and purchases returns and allowances are deducted from purchases determines net cost

False

Freight in charges listed on invoice received from supplier are not part of total credit to a/p

False

Freight in is subtracted from purchases to get delivered cost of purchases

False

If business has prenumbered purchase orders it's not necessary to account for every purchase order

False

Individual amounts in purchases journal are posted to general ledger during month

False

No amounts posted from purchases journal to a/p subsidiary Ledger during month

False

P1 in posting reference indicates the data was posted to Page 1 of cash payments journal

False

Purchase Requisition is a form to order goods

False

Purchase account is an asset on balance sheet

False

Purchases returns and allowances normal debit balance

False

Freight charges on merch purchases should be debited to:

Freight In account

After a supplier of merch is selected, purchasing department issues a form called:

Purchase order