| D. Accounts Receivable | Question 6 of 20 | 5.0 Points | On April 30, Millers Bike Goods purchased $600 of merchandise on account from the Spark Company. The goods were shipped F.O.B. shipping point. The freight charge of $40 was paid by Spark Company and added to the invoice. The amount to record in the Purchases account is | A. $650. | | | B. $640. | | | C. $550. | | | D. $450. | Question 7 of 20 | 5.0 Points | If merchandise was returned under the periodic inventory method, this will be recorded with a | A. debit to Accounts Payable and a credit to Purchases Returns and Allowances. | | | B. debit to Merchandise Inventory and a credit to Purchases. | | | C. credit to Accounts Payable and a debit to Merchandise Inventory. | | | D. debit to Accounts Payable and a credit to Merchandise Inventory. | Question 8 of 20 | 5.0 Points | Jackson purchased $500 of goods and received credit terms of 2/10, n/30. How much did he pay if payment was made during the discount period? | A. $450 | | | B. $510 | | | C. $500 | | | D. $490 | Question 9 of 20 | 5.0 Points | On February 12, Clare purchased $400 of merchandise on account from Larsens Accessories, terms 2/10, n/30. The goods were shipped F.O.B. destination. The freight charge was $40. The amount to be recorded in the Accounts Payable Subsidiary ledger is | A. $392. | | | B. $408. | | | C. $400. | | | D. $440. | A. O.B. shipping point means | | | B. the buyer pays for the freight. | | | C. the seller pays for the freight. | | | D. the title passes at time of shipment. | | | E. Both A and C | Question 11 of 20 | 5.0 Points | A list of creditors with balances owed is called a | A. schedule of accounts receivable. | | | B. schedule of accounts payable. | | | C. list of suppliers. | | | D. trade list. | Question 12 of 20 | 5.0 Points | If a display rack was purchased for the store, which account would be increased? | A. Store Equipment | | | B. Purchases | | | C. Cash | | | D. Capital | Question 13 of 20 | 5.0 Points | Hardware Restoration had net purchases of $50,000. If Purchases Returns and Allowances are $10,000 and Purchases Discounts are $1,500, what are gross purchases? | A. $38,500 | | | B. $50,000 | | | C. $61,500 | | | D. $40,000 | Question 14 of 20 | 5.0 Points | Tyler returned $500 worth of merchandise within the discount period. The entry to record the return is which of the following? | A. Debit Purchases for $500; credit Accounts Payable $500 | | | B. Debit Purchases for $500; credit Purchases Returns and Allowances $500 | | | C. Debit Accounts Payable/Suppliers Name for $500; credit Purchases Returns and Allowances for $500 | | | D. Debit to Accounts Payable for $500, credit Purchases Discount for $500 | Question 15 of 20 | 5.0 Points | On June 15, Paradise Park purchased merchandise for the racetrack. The invoice was for $4,500, terms 2/10, n/30. On June 20, Paradise Park returned $200 of merchandise for credit. On June 25, it paid the amount owed. The debit to Purchases on June 15 is | A. $4,214.00. | | | B. $4,786.00. | | | C. $4,300.00. | | | D. $4,500.00. | Question 16 of 20 | 5.0 Points | Heidis Accessories bought 50 necklaces for $10 each on account. The invoice included a 6% sales tax and payment terms of 2/10, n/30. Five necklaces were returned prior to payment. The entry to record the payment (within the discount period) would include a credit to | A. Cash for $477. | | | B. Cash for $468. | | | C. Accounts Receivable for $477. | | | D. Accounts Receivable for $468. | | | Question 16 of 20 | 5.0 Points | Heidis Accessories bought 50 necklaces for $10 each on account. The invoice included a 6% sales tax and payment terms of 2/10, n/30. Five necklaces were returned prior to payment. The entry to record the payment (within the discount period) would include a credit to | A. Cash for $477. | | | B. Cash for $468. | Question 17 of 20 | 5.0 Points | The entry to record a purchase of $5,000 on account, terms of 2/10, n/30, would include a | A. debit to Purchases Discount for $100. | | | B. credit to Accounts Payable for $5,000. | | | C. debit to Accounts Payable for $5,000. | | | D. credit to Cash for $5,000 | Question 18 of 20 | 5.0 Points | On November 30, Janochs Dog Kennel purchased $600 of merchandise on account from the Ganster Company. The goods were shipped F.O.B. shipping point. The freight charge of $40 was paid by Ganster Company and added to the invoice. The amount to record in the Purchases account is | A. $600. | | | B. $640. | | | C. $560. | | | D. $550. Heidis Accessories bought 50 necklaces for $10 each on account. The invoice included a 6% sales tax and payment terms of 2/10, n/30. Five necklaces were returned prior to payment. The entry to record the return would include a debit to | A. Accounts Payable for $50.00. | | | B. Accounts Payable for $53.00. | | | C. Purchases Returns and Allowances for $50.00. | | | D. Purchases Returns and Allowances for $53.00 Clothes R Us bought some new clothes for its fashion line and is required to pay the freight costs. The freight terms are | A. F.O.B. destination. | | | B. F.O.B. shipping point. | | | C. 3/10, n/30. | | | D. None of the above | | | | | | | C. Accounts Receivable for $477. | | | D. Accounts Receivable for $468. | | | | | | | | | | | | | |
