7 years ago
51.Assuming a periodic inventory system is used, identify the statement below that 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.None of these statements are correct.
52.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.
53.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.
54.Hugh Snow, the buyer, returned merchandise to Farley Co., the seller. The entry on the books of Hugh Snow to record the return of merchandise assuming a perpetual inventory system is used, would include a:
A.Debit to Accounts Payable
B.Credit to Purchase Returns and Allowances
C.Debit to Account Receivable
D.Debit to Sales Returns and Allowances
55.Assuming a periodic inventory system, the journal entry to record the purchase on account of $900 of merchandise with freight of $65 prepaid 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
56.Assuming a periodic inventory system is used, 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, credit 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
57.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
58.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
59.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.
60.Which of the following accounts has a normal debit balance?
A.Purchases
B.Purchase Returns
C.Accounts Payable
D.Sales
