Question 1 5 points FOB shipping point means Question 1 opt

Question 1 (5 points)

F.O.B. shipping point means __________.

Question 1 options:

the buyer pays for the freight

the seller pays for the freight

the title passes at time of shipment

both A and C

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Question 2 (5 points)

The entry to record a purchase of $5,000 on account, terms of 2/10, n/30, would include a __________.

Question 2 options:

debit to Purchases Discount for $100

credit to Accounts Payable for $5,000

debit to Accounts Payable for $5,000

credit to Cash for $5,000

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Question 3 (5 points)

Medeco bought goods for $250 on credit. Medeco returned $50 worth of goods. Terms of the sale were 2/10, n/30. If Medeco pays the amount owed within the discount period, what is the amount they should pay?

Question 3 options:

$250

$204

$196

$200

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Question 4 (5 points)

Which is the controlling account for the amounts owed to individual creditors?

Question 4 options:

Accounts Payable in the general ledger

Accounts Receivable in the general ledger

Accounts Receivable in the subsidiary ledger

Accounts Payable in the subsidiary ledger

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Question 5 (5 points)

Heidi’s 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 purchase would include a __________.

Question 5 options:

debit to Accounts Payable for $530

debit to Accounts Payable for $500

debit to Purchases for $530

debit to Purchases for $500

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Question 6 (5 points)

A debit memorandum decreases which account on the seller’s books?

Question 6 options:

Accounts Payable

Purchases Returns and Allowances

Sales Returns and Allowances

Accounts Receivable

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Question 7 (5 points)

On November 30, Janoch’s 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 __________.

Question 7 options:

$600

$640

$560

$550

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Question 8 (5 points)

A debit memorandum increases which account on the buyer’s books?

Question 8 options:

Accounts Payable

Purchases Returns and Allowances

Sales Returns and Allowances

Accounts Receivable

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Question 9 (5 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?

Question 9 options:

$450

$510

$500

$490

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Question 10 (5 points)

The normal balance for Purchases Returns and Allowances is __________.

Question 10 options:

a debit

a credit

It does not have a normal balance

zero

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Question 11 (5 points)

Returned merchandise under the periodic inventory method. This will be recorded with a __________.

Question 11 options:

debit to Accounts Payable and a credit to Purchases Returns and Allowances

debit to Merchandise Inventory and a credit to Purchases

credit to Accounts Payable and a debit to Merchandise Inventory

debit to Accounts Payable and a credit to Merchandise Inventory

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Question 12 (5 points)

The Accounts Payable subsidiary ledger __________.

Question 12 options:

lists accounts alphabetically

lists accounts for which the company owes money

has a controlling account in the general ledger

all of the above

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Question 13 (5 points)

On February 12, Clare purchased $400 of merchandise on account from Larsen’s 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 __________.

Question 13 options:

$392

$408

$400

$440

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Question 14 (5 points)

If a display rack was purchased for the store, which of the following accounts would be increased?

Question 14 options:

Store Equipment

Purchases

Cash

Capital

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Question 15 (5 points)

When merchandise is bought for resale, which of the following accounts would be decreased?

Question 15 options:

Store Equipment

Purchases

Cash

Capital

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Question 16 (5 points)

On June 15, Paradise Park purchased merchandise for the race track. 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 __________.

Question 16 options:

$4,214.00

$4,786.00

$4,300.00

$4,500.00

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Question 17 (5 points)

Merchandise paid for within the discount period for a Cash refund was returned. This will be recorded with a __________.

Question 17 options:

credit to a liability

credit to an asset

debit to a liability

debit to an asset

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Question 18 (5 points)

To prove that the subsidiary ledger agrees with the Accounts Payable controlling account balance, complete a __________.

Question 18 options:

debit memorandum

schedule of accounts payable

purchase order

schedule of accounts receivable

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Question 19 (5 points)

A list of creditors with balances owed is called a __________.

Question 19 options:

schedule of accounts receivable

schedule of accounts payable

list of suppliers

trade list

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Question 20 (5 points)

Question 20 options:

a credit to Cash for $477

a credit to Cash for $468

a credit to Accounts Receivable for $477

a credit to Accounts Receivable for $468

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	the buyer pays for the freight
	the seller pays for the freight
	the title passes at time of shipment
	both A and C

Solution for Question 1:-

4) is correct answer: Both A and C

Explanation:-

FOB Shipping means sales is considered complete at the seller shipping dock. Hence Buyer will be responsible for freight cost and liabilityduring transport and tittle transfer occur as soon as the goods are safely on board the transport.

Question:2

Journal for Purchase will be:-

Purchase Debit

Account Payable / Cash Credit

(2) credit to Accounts Payable for $5,000 is correct answer

Question :3

3) $196 is correct answer.

Calculation:-

Amount paid= $250 ( Purchase good) -$50(Goods return)- ( $250-$50)*2%(Discount )

= $196

4) Account payable in Journal ledger is correct answer.

Note As epr chegg policy only 4 question can be solved