Chapter 11

none of these choices are correct

A correction of a transaction posted to the wrong customer account results in credit to Accounts Payable debit and credit to Accounts Payable debit to Accounts Payable none of these choices are correct

sales allowance

A customer notifies the vendor that purchased merchandise is damaged and cannot be sold at the normal price. Any credit granted to the customer would be called a sales returns sales allowance purchase returns purchase allowance

debit memorandum

A form prepared by the customer showing the price deduction taken by the customer for a return or an allowance. credit memorandum purchase invoice check debit memorandum

credit memorandum

A form prepared by the vendor showing the amount deducted for returns and allowances. debit memorandum credit memorandum check purchase invoice

Board of Directors

A group of persons elected by the stockholders to govern a corporation. CEO Board of Directors Purchasing Agents Sales Agents

general journal

A journal with two amount columns in which all kinds of entries can be recorded. general journal purchase journal purchase returns and allowance journal sales returns and allowance journal

credit to Purchases Returns and Allowances

A return of merchandise to the vendor results in a credit to Purchases Returns and Allowances debit to Purchases Returns and Allowances credit to Purchases debit to Purchases

declaring a dividend

Action by a board of directors to distribute corporate earnings to stockholders. dividend payment establish a profit declaring a dividend talk to the CEO

retained earnings

An amount earned by a corporation and not yet distributed to stockholders. profit capital retained earnings dividend

Retained Earnings

At the end of the fiscal period, the balance of Dividends is closed to Retained Earnings Income Summary Dividends Payable none of these are correct

purchase allowance

Credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the customer's account payable to the vendor. sales return purchase return purchase allowance sales allowance

purchase return

Credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer's account payable to the vendor. sales return purchase return sales allowance sales return

sales allowance

Credit allowed to a customer for part of the sales price of merchandise that is not returned, resulting in a decrease in the accounts receivable of the merchandising business. sales allowance purchase allowance sales return purchase return

sales returns

Credit allowed to a customer for the sales price of returned merchandise, resulting in a decrease in the accounts receivable of the merchandising business. sales returns sales allowance purchase returns purchase allowance

drawing

Dividends is a temporary account of a corporation and is similar to which proprietorship account? capital drawing retained earnings none of these are correct

dividends

Earnings distributed to stockholders. withdrawals returns allowances dividends

the number of shares outstanding multiplied by a dollar amount per share

The amount of a dividend is normally calculated as a percentage of the balance in Common Stock the balance of Retained Earnings the number of shares outstanding multiplied by a percentage dividend rate the number of shares outstanding multiplied by a dollar amount per share

credit to Accounts Payable and the vendor's accounts payable accounts

The purchase of supplies on account results in a credit to Accounts Payable debit to Accounts Payable credit to Accounts Payable and the vendor's accounts payable accounts debit to Accounts Payable and the vendor's accounts payable accounts

Dividends

Which of the following stockholders' equity accounts has a normal debit balance? Dividends Income Summary Capital Stock Paid-in Capital in Excess of Par