Question : 51. Tune Tones Instrument Tuning Company owes Mandy Lynn’s Music Studio : 1202788

51. Tune Tones Instrument Tuning Company owes Mandy Lynn’s Music Studio $4,856 as of November 1. During November Tune Tones purchased merchandise from Mandy Lynn totaling $8,495 and made payments on account to Mandy Lynn in the amount of $7,250. The amount Tune Tones owes Mandy Lynn on November 30 is: 
A. $6,101.
B. $3,611.
C. $10,889.
D. $7,250.

52. Nadal, Inc. owes Wozniaki Company $10,560 as of April 1. During April, Nadal, Inc. purchased $12,800 of merchandise from Wozniaki Company and made payments on account to Wozniaki Company totaling $9,200. The amount Nadal, Inc. owes Wozniaki Company on April 30 is: 
A. $9,200 debit.
B. $6,960 credit.
C. $14,160 credit.
D. $12,800 debit.

53. If a business pays $1,100 on account to a creditor, the effect of the payment is a decrease to cash and a(n) 
A. decrease to Fees Income.
B. increase of capital.
C. increase to accounts receivable.
D. decrease to accounts payable.

54. The amount of the purchases for a period is presented in 
A. the Liabilities section of the balance sheet.
B. the Revenue section of the income statement.
C. the Cost of Goods Sold section of the income statement.
D. the Expenses section of the income statement.

55. 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.

56. Hugh Snow, the buyer, returned merchandise to Farley Co., the seller. The entry on the books of Farley company to record the return of merchandise from Hugh Snow 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.

57. Postings to the accounts payable ledger should be made 
A. daily.
B. weekly.
C. monthly.
D. at the end of the fiscal period.

58. The total of the individual creditor accounts in the subsidiary ledger must ________ the balance of the Accounts Payable control account. 
A. be greater than
B. be less than
C. be equal to
D. be subtracted from

59. The total of the balances in the 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.

60. The objective of internal control of purchases is to 
A. create written proof that purchases and payments are authorized.
B. create a disciplined work environment.
C. make the sales process more complex.
D. create more organized invoices.

61. During March a firm purchased $22,650 of merchandise and paid freight charges of $1,720. If the net delivered cost of purchases for the March is $21,900, what is the total purchase returns for March? 
A. $0
B. $2,470
C. $970
D. $3,440

62. During the year, a firm purchased $256,200 of merchandise and paid freight charges of $41,720. If the total purchases returns and allowances were $15,790 and purchase discounts were $8,250 for the year, what is the net delivered cost of purchases? 
A. $297,920
B. $273,880
C. $321,960
D. $190,440

63. During the year, a firm purchased $56,970 of merchandise and paid freight charges of $12,680. If the total purchases returns and allowances were $6,495 and purchase discounts were $2,050 for the year, what is the net delivered cost of purchases? 
A. $61,105
B. $69,650
C. $72,349
D. $35,745