1) The document issued by a seller for a credit to a customer’s Accounts Receivable is the Debit Memo
2) Transactions entered in the general journal are posted to the general ledger, not the subsidiary ledgers.
3) Landon Company sold a piece of land for $60,000, accepting a 10-year note receivable in that amount. Assuming the use of special journals, this entry would be recorded in the:
A) general journal.
B) sales journal.
C) cash receipts journal.
D) long-term asset journal.
4) A document issued by a seller to credit a customer’s account for returned merchandise is referred to as a:
A) seller’s memorandum.
B) debit memo.
C) credit memo.
D) accounts payable memo.
5) A document issued by a purchaser when returning merchandise is referred to as a(n):
A) seller’s memorandum.
B) debit memo.
C) credit memo.
D) accounts payable memo.
6) Bryson Company records returns and allowances in the general journal. On June 25, Bryson issued a $120 debit memo for merchandise purchased on credit from Crimson Company because part of the merchandise that was sent was not what Bryson ordered. What entry does Bryson make assuming a perpetual inventory system?
A)
Accounts Payable-Crimson Company
120
Purchase Returns and Allowances
120
B)
Accounts Payable-Crimson Company
120
Inventory
120
C)
Accounts Receivable-Crimson Company
120
Sales Returns and Allowances
120
D)
Accounts Payable-Crimson Company
120
Accounts Receivable-Crimson Company
120
7) Bryson Company records returns and allowances in the general journal. On June 25, Bryson issued a $120 debit memo for merchandise purchased on credit from Crimson Company because part of the merchandise that was sent was not what Bryson ordered. What entry does Bryson make assuming a periodic inventory system?
A)
Accounts Payable-Crimson Company
120
Purchase Returns and Allowances
120
B)
Accounts Payable-Crimson Company
120
Inventory
120
C)
Accounts Receivable-Crimson Company
120
Sales Returns and Allowances
120
D)
Accounts Payable-Crimson Company
120
Accounts Receivable-Crimson Company
120
8) Packard Company records returns and allowances in the general journal. On August 16, Packard issued a $150 credit memo to Lacker Company for merchandise sold on credit on August 1. What entry does Packard make?
A)
Accounts Payable-Lacker Company
150
Purchase Returns and Allowances
150
B)
Accounts Payable-Lacker Company
150
Inventory
150
C)
Accounts Receivable-Lacker
150
Sales Returns and Allowances
150
D)
Sales Returns and Allowances
150
Accounts Receivable-Lacker
150
9) Perkins issued a $500 credit memo to a customer, Susan Richardson, for inventory that Richardson returned because it was not what she had ordered. What entry does Perkins make?
A)
Accounts Receivable-Richardson
500
Sales Returns and Allowances
500
B)
Sales Returns and Allowances
500
Accounts Payable-Richardson
500
C)
Sales Returns and Allowances
500
Accounts Receivable-Richardson
500
D)
Accounts Payable-Richardson
500
Sales Returns and Allowances
500
10) Perkins issued a $500 credit memo to a customer, Susan Richardson, for inventory that Richardson returned because it was not what she had ordered. What entry does Richardson make assuming her company is using a perpetual inventory system?
A)
Accounts Payable-Perkins
500
Sales Returns and Allowances
500
B)
Inventory
500
Accounts Payable-Perkins
500
C)
Accounts Payable-Perkins
500
Purchase Returns and Allowances
500
D)
Accounts Payable-Perkins
500
Inventory
500
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