Question : 48.To record a return of merchandise purchased credit the books : 1169416

 

 

48.To record a return of merchandise purchased on credit on the books of the buyer, the accountant would   

A. debit Purchases Returns and Allowances and credit Accounts Receivable.

 

B. debit Purchases Returns and Allowances and credit Purchases.

 

C. debit Accounts Payable and credit Purchases Returns and Allowances.

 

D. debit Purchases and credit Purchases Returns and Allowances.

 

 

 

 

49.Nice Guys Apparel received a $200 credit memorandum as an allowance for goods that it returned to one of its suppliers. Identify the statement below that would be correct when posting the transaction.   

A. A debit of $200 would be posted to the supplier’s account in the accounts payable ledger.

 

B. A debit of $200 would be posted to the supplier’s account in the accounts receivable ledger.

 

C. A credit of $200 would be posted to the Accounts Receivable account in the general ledger.

 

D. A credit of $200 would be posted to the Purchases account in the general ledger.

 

 

 

 

50.Music, Inc. uses a periodic inventory system when recording its purchases and sales of inventory. If the business returns $1,000 of damaged goods to its supplier, select the correct entry to record the return:   

A. 

 

 

B. 

 

 

C. 

 

 

D. 

 

 

 

 

 

51.The total of the balances in the individual creditor’s accounts should agree with the balance of   

A. the Purchases account in the general ledger.

 

B. the Accounts Receivable account in the general ledger.

 

C. the Accounts Payable account in the general ledger.

 

D. the Sales account in the general ledger.

 

 

 

 

52.Which of the following statements is correct?   

A. Freight In is subtracted from Purchases to arrive at delivered cost of purchases.

 

B. Another name that may be used for the Freight In account is “Transportation In.”

 

C. Freight charges that are listed on the invoice received from a supplier are not part of the total credit to Accounts Payable to record the credit purchase.

 

D. The Freight In account is subtracted from Sales to get Net Sales.

 

 

 

 

53.The amount of the purchases for a period is presented in   

A. the balance sheet.

 

B. the income statement.

 

C. the statement of owner’s equity.

 

D. the cost of purchases statement.

 

 

 

 

54.A firm had purchases of $16,200, freight charges of $300, and purchases returns and allowances of $1,100 during one month. Its net delivered cost of purchases was   

A. $14,800.

 

B. $17,600.

 

C. $16,200.

 

D. $15,400.

 

 

 

55.Hugh Snow returned merchandise to Farley Co. The entry on Hugh Snow’s books to record the return of merchandise to Farley Co. would include a:   

A. Debit Accounts Payable

 

B. Credit to Purchase Returns and Allowances

 

C. Debit to Account Receivable

 

D. Debit Sales Returns and Allowances

 

 

 

 

56.Best Value Furniture uses the periodic inventory system to account for its inventory. It purchased $2,000 of goods from its supplier but later returned $400 of the goods due to damage. Best Value would record the return by:   

A. debiting Accounts Payable, crediting Purchases

 

B. debiting Sales Returns and Allowances, crediting Accounts Receivable

 

C. debiting Accounts Payable, crediting Purchases Purchase Returns and Allowances

 

D. debiting Purchase Returns and Allowances, crediting Accounts Payable

 

 

 

 

57.The journal entry to record the purchase on account of $900 of merchandise with freight of $65 prepaid by their supplier and added to the invoice is:   

A. debit Purchases $965; credit Accounts Payable $965

 

B. debit Accounts Payable $965, debit Freight in $65; credit Purchases $900

 

C. debit Purchases $900, debit Freight In $65; credit Accounts Payable $965

 

D. debit Accounts Receivable $965; credit Sales $965