BT 165 INTRO TO ACCOUNTING CYCLE

Concept QuizMerchandise Sales and Purchases Transactions (perpetual inventory system)

Directions: For each transaction below, write on the chart the name of the account(s) to be debited and the name of the account(s) to be credited. All sales transactions involve sales tax.

1. Agnes Steadman invested cash in her new business.
2. Bought merchandise for resale; paid cash
3. Sold merchandise on account to S. Mintz
4. Bought merchandise on account from Surety Company
5. Sold merchandise for cash.
6. Purchased store supplies on account from C. Smythe
7. Returned merchandise to Surety Co. and received credit on account.
8. L. Letterman returned merchandise for cash.
9. Recorded the adjusting entry for salaries owed but not paid.
10. Paid balance due to Surety Company within discount period.