Chapter 8 Accounting
What accounts are affected when I issued a check to a supplier as a payment on account?
Debit: Accounts Payable Credit: Cash
What accounts are affected when I returned some damaged merchandise to a supplier and received a credit memorandum?
Debit: Accounts Payable Credit: Purchases Returns and Allowances
What accounts are affected when I purchase merchandise for cash?
Debit: Purchases Credit: Cash
What accounts are affected when I purchase merchandise on terms of 2/10, n/30? The supplier's invoice includes a freight charge.
Debit: Purchases, Freight In Credit: Accounts Payable
Freight charges on merchandise purchases should be debited to:
Freight In
Where does the cost of transportation get booked?
Freight In
an account showing transportation charges for items purchased
Freight in account
Credit purchases of supplies that are to be used in the business are entered in :
General journal
What types of transaction is recorded in the purchases journal?
Merchandise purchased on credit for resale
an account used to record the purchase of goods on credit
Purchase Account
a price reduction from the amount originally billed
Purchase Allowance
a bill received for goods purchased
Purchase Invoice
a list sent to the purchasing department showing the items to be ordered
Purchase Requisition
return of unsatisfactory goods
Purchase Return
After a supplier of merchandise is selected, the purchasing department issues a form called:
Purchase order
What form is sent to the supplier to order goods?
Purchase order
an order to the supplier of goods specifying items needed, quantity, price, and credit terms
Purchase order
When the sales department needs goods, what document is sent to the purchasing department?
Purchase requisition
a cash discount offered to the customer for payment within a specified period
Purchases Discount
a special journal used to record the purchase of goods on credit
Purchases Journal
Purchases of merchandise on credit should be recorded in :
Purchases journal
a form showing quantity and condition of goods received
Receiving Report
a cash discount offered by the supplier for payment within a specified period
Sales Discount
a supplier's billing document
Sales Invoice
a list of all balances owed to creditors
Schedule of accounts payable
I have a purchase requisition ready...what is my next step?
Send a Purchase Order to the supplier
An invoice dated March 15 for $4,000 shows credit terms 2/10, n/30. What do the credit terms mean?
The business will receive a 2 percent discount if the invoice is paid within 10 days. If the invoice is not paid within 10 days, the total amount is due within 30 days.
True or False: A firm's accounts payable ledger may include accounts for creditors who are not suppliers of merchandise.
True
True or False: Cash purchases of merchandise are not recorded in the purchases journal.
True
The freight in account should have a(n) ______ balance.
debit
On August 31, 2015, the general ledger of Forever 21 showed the following balances: Purchases: $188,000; Freight In, $6,500; Purchases Returns and Allowances, $8,000. What was the net delivered cost of purchases for August?
$186,500
On August 31, 2015, the general ledger of Forever 21 showed the following balances: Purchases: $188,000; Freight In, $6,500; Purchases Returns and Allowances, $8,000. What was the delivered cost of purchases for August?
$194,500
a subsidiary ledger that contains a separate account for each creditor
Accounts payable ledger
a discount offered by suppliers for payment received within a specified period of time
Cash discount
the actual cost to the business of the merchandise sold to customers
Cost of goods sold
