Section B Directions: Complete each of the following statements by writing in the Answers column the letter of the word or words that correctly completes each statement. (3 points each) For Scoring Answers 1. A form used to request the responsible person or department to purchase merchandise or other property is known as a (A) purchase invoice; (B) receiving report; (C) sales ticket; (D) purchase order; (E) purchase requisition 2. A printed price of manufacturer or wholesaler that is subject to special discounts is called a (A) net price; (B) gross price; (C) list price; (D) trade price; (E) purchase requisition. 3. Assume the gross amount of an invoice is $300 and a trade discount of 15% is allowed. The net amount is (A) $300; (B) $255; (C) $45; (D) $15; (E) $0. 4. Assume the gross amount of an invoice is $1,000 and a trade discount of 25% is allowed. The dollar amount of the trade discount is (A) $1,000; (B) $750; (C) $250; (D) $25; (E) none of these. 5. An invoice in the amount of $600 is subject to a trade discount of 30% and credit terms of 2/10,n/30. If all discounts are taken, the buyer will pay what amount to settle the account? (A) $12; (B) $180; (C) $408; (D) $411.60; (E) $420. 6. Which of the following is not part of the purchasing process? (A) purchases journal; (B) purchase order; (C) receiving report; (D) purchase requisition; (E) purchase invoice. Which of the following credit terms allows a discount of 1% if payment is made within 10 days from the date of the invoice; otherwise, the total amount of the invoice must be paid within 30 days from its date? (A) 1/10, EOM; (B) 1/30, EOM; (C) 10/1, EOM; (D) 10/1, n/30; (E) 1/10, n/30. 8. An invoice of $455.00 dated June 10 is subject to credit terms of 2/15, n/45. The amount to be paid if the invoice is paid on June 26 is (A) $455.00; (B) $445.90; (C) $364.00; (D) $91.00; (E) $9.10. 9. An entry to record payment within the discount period includes an) (A) debit to Cash; (B) debit to Purchase Discounts; (C) debit to Accounts Payable; (D) all of these; (E) none of these. 10. An entry by a customer to record a return of merchandise would include a (A) debit to Purchase Discounts; (B) credit to Purchase Returns and Allowances; (C) credit to Accounts Payable; (D) all of these; (E) none of these