Accounting Chapter 8
To record Return of merch purchased on credit, accountant would:³33
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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