PART C Answer true or false to the following statements. 1. Recording a debit memorandum results in Inventory decreasing and Accounts Payable decreasing. TRUE 2. (X) means the Accounts Payable ledger has been updated. FALSE 3. The total of the sundry column is never posted at the end of the month. FALSE 4. A schedule of accounts payable can be prepared from the general ledger. TRUE 5. Cross-footing (or cross-adding) verifies the accuracy of recording transactions into the general journal. TRUE 6. The cash payments journal records purchases of inventory made on credit. FALSE 7. The sum of the accounts payable ledger should be equal to the balance in the controlling account at the end of the month. TRUE 8. The purchases journal records cash purchases and credit purchases. 9. A (V) means the total of sundry is posted monthly. 10. Net sales less Sales Returns and Allowances equals gross profit. 11. Trade discounts are always recorded in the Purchases Journal. 12. Businesses usually have a purchases journal to record cash purchases. 13. F.O.B. shipping point means the seller is responsible to cover shipping costs. 14. Purchases discounts are a credit to the Inventory account. 15. A discount period is longer than the credit period. 16. Each account in the accounts payable ledger is credited to record amounts owed to suppliers. 17. Cash purchases are recorded in the cash payments journal. 18. There is a "Dr/Cr" column in accounts payable ledger accounts. 19. Trade discounts occur because of timely payments of one's bills. 20. Gross profit less operating expenses equals net income