Question 1 of 20 0.0/ 5.0 points medeco bought goods for $250 on

Question 1 of 20

0.0/ 5.0 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 it should pay?

[removed] A. $250
[removed] B. $204
[removed] C. $196
[removed] D. $200

Question 2 of 20

0.0/ 5.0 Points

A list of creditors with balances owed is called a

[removed] A. schedule of accounts receivable.
[removed] B. schedule of accounts payable.
[removed] C. list of suppliers.
[removed] D. trade list.

Question 3 of 20

0.0/ 5.0 Points

The normal balance for Purchases Returns and Allowances is

[removed] A. a debit.
[removed] B. a credit.
[removed] C. zero.
[removed] D. It doesn’t have a normal balance.

Question 4 of 20

0.0/ 5.0 Points

[removed] A. O.B. shipping point means
[removed] B. the buyer pays for the freight.
[removed] C. the seller pays for the freight.
[removed] D. the title passes at time of shipment.
[removed] E. Both A and C

Question 5 of 20

5.0/ 5.0 Points

When the term F.O.B. shipping point is used, title passes when the

[removed] A. goods reach the halfway point.
[removed] B. goods reach the destination.
[removed] C. goods are shipped.
[removed] D. buyer unpacks the goods.

Question 6 of 20

5.0/ 5.0 Points

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

[removed] A. debit to Purchases Discount for $100.
[removed] B. credit to Accounts Payable for $5,000.
[removed] C. debit to Accounts Payable for $5,000.
[removed] D. credit to Cash for $5,000.

Question 7 of 20

0.0/ 5.0 Points

The entry to record a payment on a $600 account within the 2% discount period would include a

[removed] A. debit to Accounts Payable for $588.
[removed] B. debit to Accounts Payable for $600.
[removed] C. credit to Purchases for $588.
[removed] D. debit to Cash for $600.

Question 8 of 20

5.0/ 5.0 Points

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

[removed] A. credit to a liability.
[removed] B. credit to an asset.
[removed] C. debit to a liability.
[removed] D. debit to an asset.

Question 9 of 20

5.0/ 5.0 Points

Purchases are a/an

[removed] A. cost.
[removed] B. asset.
[removed] C. liability.
[removed] D. revenue.

Question 10 of 20

5.0/ 5.0 Points

Clothes R Us bought some new clothes for its fashion line and is required to pay the freight costs. The freight terms are

[removed] A. F.O.B. destination.
[removed] B. F.O.B. shipping point.
[removed] C. 3/10, n/30.
[removed] D. None of the above

Question 11 of 20

5.0/ 5.0 Points

Tyler returned $500 worth of merchandise within the discount period. The entry to record the return is which of the following?

[removed] A. Debit Purchases for $500; credit Accounts Payable $500
[removed] B. Debit Purchases for $500; credit Purchases Returns and Allowances $500
[removed] C. Debit Accounts Payable/Suppliers Name for $500; credit Purchases Returns and Allowances for $500
[removed] D. Debit to Accounts Payable for $500, credit Purchases Discount for $500

Question 12 of 20

0.0/ 5.0 Points

On April 30, Miller’s 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

[removed] A. $650.
[removed] B. $640.
[removed] C. $550.
[removed] D. $450.

Question 13 of 20

0.0/ 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?

[removed] A. $450
[removed] B. $510
[removed] C. $500
[removed] D. $490

Question 14 of 20

5.0/ 5.0 Points

When merchandise is bought for resale, which account would be decreased?

[removed] A. Store Equipment
[removed] B. Purchases
[removed] C. Cash
[removed] D. Capital

Question 15 of 20

0.0/ 5.0 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

[removed] A. $392.
[removed] B. $408.
[removed] C. $400.
[removed] D. $440.

Question 16 of 20

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

[removed] A. Accounts Payable
[removed] B. Purchases Returns and Allowances
[removed] C. Sales Returns and Allowances
[removed] D. Accounts Receivable

Question 17 of 20

0.0/ 5.0 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

[removed] A. $600.
[removed] B. $640.
[removed] C. $560.
[removed] D. $550.

Question 18 of 20

0.0/ 5.0 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 debit to

[removed] A. Accounts Payable for $530.
[removed] B. Accounts Payable for $500.
[removed] C. Purchases for $530.
[removed] D. Purchases for $500.

Question 19 of 20

0.0/ 5.0 Points

The Accounts Payable subsidiary ledger

[removed] A. lists accounts alphabetically.
[removed] B. lists accounts for which the company owes money.
[removed] C. has a controlling account in the general ledger.
[removed] D. All of the above

Question 20 of 20

0.0/ 5.0 Points

If a display rack was purchased for the store, which account would be increased?

[removed] A. Store Equipment
[removed] B. Purchases
[removed] C. Cash
[removed] D. Capital