1. When using a periodic inventory system, identify the account debited when merchandise is purchased for resale.

a) purchase returns and allowances

b) merchandise inventory

c) purchases

d) sales

2. 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 receivable ledger.

b) A debit of $200 would be posted to the supplier's account in the accounts payable 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.

3.

The Picture Perfect Camera Shop had the following transactions for the month of August 2019: Aug. 1 Purchased cameras for $3,500 plus a freight charge of $160 from the Mason Company, Invoice 532, dated July 29, net payable in 60 days. 6 Purchased color film for $475 from Digital Company, Invoice 989, dated August 4, net payable in 30 days. 10 Purchased camera cases for $925 from Raven Company, Invoice 668, dated August 8; terms are 2/10, n/30. 15 Returned defective cameras to Mason Company and received Credit Memorandum 205 $540. The cameras originally purchased on Invoice 532 of July 29. 20 Purchased cameras for $3,575 plus freight of $90 from Braemer Cameras, Invoice 2093, dated August 18; terms are 1/10, n/60. 23 Received Credit Memorandum 597 for $60 from Raven Company. The amount is an allowance for slightly damaged but usable goods purchased on Invoice 668 dated August 8. for were Record the transactions in a purchases journal. Total, prove, and rule the purchases journal as of August 31. Record the transactions in a general journal for August 2019. Purchases Journal General Journal Record the transactions in a purchases journal. Total, prove, and rule the purchases journal as of August 31. PURCHASES JOURNAL Date Account Invoice Number Date of Invoice Terms Accounts Payable Credit Purchases Debit Freight in Debit Aug 31 Totals Purchases Journal General Journal Journal entry worksheet