Question : 53. The journal entry to record the purchase of merchandise account : 1197874

53. The journal entry to record the purchase of merchandise on account for $2,750 with freight of $125 prepaid and added to the invoice is: 

A. debit Purchases $2,750; credit Accounts Payable $2,750

B. debit Accounts Payable $2,875, debit Freight in $125; credit Purchases $2,750

C. debit Purchases $2,750, debit Freight In $125; credit Accounts Payable $2,875

D. debit Accounts Receivable $2,875; credit Sales $2,875

54. 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

55. A creditor’s account in the accounts payable ledger has a balance of $10,560 as of April 1. After a transaction of $12,800 is posted from the purchases journal and a transaction of $9,200 is posted from the cash payments journal, the balance of the creditor’s account on April 30 is: 

A. $9,200 debit

B. $6,960 credit

C. $14,160 credit

D. $12,800 debit

56. If a business pays $1,100 on account to a creditor, the effect of the payment is a decrease to cash and a 

A. decrease to Fees Income

B. increase of capital

C. increase to accounts receivable

D. decrease to accounts payable

57. Check marks next to the individual amounts in the purchases journal mean that the amounts 

A. have been posted to the general ledger.

B. have been posted to the accounts payable subsidiary ledger.

C. have been posted to the accounts receivable subsidiary ledger.

D. do not need to be posted to any account.

58. Postings to the accounts payable ledger should be made 

A. daily.

B. weekly.

C. monthly.

D. at the end of the fiscal period.

59. A creditor’s account in the accounts payable ledger has a $1,600 beginning balance. After a transaction for $700 is posted from the purchases journal, the balance of the creditor’s account is 

A. $2,300 debit.

B. $900 credit.

C. $2,300 credit.

D. $900 debit.

60. 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.

61. 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

62. 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.

63. 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.

64. 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.

65. 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