ACC 291 ENTIRE COURSE


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ACC 291 ENTIRE COURSE


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ACC 291 ENTIRE COURSE

˙

ACC 291T Week 1 Practice: Connect? Knowledge Check
˙

Complete˙the Week 1 Knowledge Check in Connect?.

Note:˙You have˙unlimited attempts˙available to complete this practice assignment. The highest scored attempt will be recorded.

These assignments have earlier due dates, so plan accordingly.

Grades must be transferred manually to eCampus by your instructor. Don?t worry, this might happen after your due date

˙

Hour Place Clock Shop sold a grandfather clock for $3,750 subject to a 7% sales tax. The entry in the general journal will include a debit to Accounts Receivable for

Multiple Choice

˙

$3,625.00.

˙

$4,012.50.

˙

$3,750.00.

˙

$3,487.50.

˙

The amount used by wholesalers to record sales in the general journal is

Multiple Choice

˙

the retail price.

˙


the list price.

˙


the original price.

˙

the net price.

˙

Merchandise is sold on credit for $1,600 plus 6 percent sales tax. The journal entry to record the sale will include a debit to Accounts Receivable for

Multiple Choice

˙

$1,600.00.

˙

$1,696.00.

˙

$2,560.00.

˙

$1,504.00.

˙

˙

˙

The balance due from an individual customer can be found in:

Multiple Choice

˙

the general journal.

˙


the Sales account in the general ledger.

˙

the accounts receivable subsidiary ledger.

˙

the Accounts Receivable account in the general ledger.

˙

˙

˙

The entry to record a return by a credit customer of defective merchandise on which no sales tax was charged includes

Multiple Choice

˙

a debit to Sales and a credit to Accounts Receivable.

˙

a debit to Accounts Receivable and a credit to Sales Returns and Allowances.


a debit to Sales and a credit to Sales Returns and Allowances.

˙

a debit to Sales Returns and Allowances and a credit to Accounts Receivable.

˙

˙

˙

On June 12, Music, Inc. sells $4,000 of goods on account to a credit customer with credit terms of 1/10, n/30. If the customer pays on June 20, select the˙ entry to record the receipt of the customer?s payment:

Multiple Choice

˙
Cash˙˙˙˙˙ ˙˙˙˙ 3,960

Sales Discounts˙˙ ˙˙˙˙ 40

Accounts Receivable ˙˙˙˙ ˙˙˙˙˙ ˙˙˙˙˙ 4,000

________________________________________

˙
Cash˙˙˙˙˙ ˙˙˙˙ 4,000

Accounts Receivable ˙˙˙˙ ˙˙˙˙˙ ˙˙˙˙˙ 4,000

________________________________________

˙

Cash˙˙˙˙˙ ˙˙˙˙ 4,000

Sales Discounts˙˙ ˙˙˙˙ ˙˙˙˙˙ ˙˙˙˙˙ 40

Accounts Receivable ˙˙˙˙ ˙˙˙˙˙ ˙˙˙˙˙ 3,960

________________________________________

˙
˙

Accounts Receivable ˙˙˙˙ 3,960

Sales Discounts˙˙ ˙˙˙˙ 40

Cash˙˙˙˙˙ ˙˙˙˙ ˙˙˙˙˙ ˙˙˙˙˙ 4,000

________________________________________

˙

˙

˙

Which of the following describes the Sales Returns and Allowances account?

Multiple Choice

˙

A contra expense account with a normal debit balance.


An expense account with a normal debit balance.

˙

A revenue account with a normal credit balance.

˙

A contra revenue account with a normal debit balance.

˙

˙

˙

Hugh Snow, the buyer, returned merchandise to Farley Co., the seller. The entry on the books of Farley company to record the return of merchandise from Hugh Snow would include a:

Multiple Choice

˙

Debit to Account Receivable

˙

˙

Debit to Accounts Payable

˙

Debit to Sales Returns and Allowances

˙

Credit to Sales Returns and Allowances

Merchandise is sold for cash for $1,600 plus 6 percent sales tax. The journal entry to record the sale will include

Multiple Choice

˙

a debit to Accounts Receivable for $1,600; a debit to Sales Tax Payable for $96 and a credit to Sales for $1,696.

˙

a debit to Cash for $1,600 and a credit to Sales for $1,600.

˙

a debit to Cash for $1,696, a credit to Sales Tax Payable for $96 and a credit to Sales for $1,600.

˙

a debit to Accounts Receivable for $1,696 and a credit to Sales for $1,696.

Sales Returns and Allowances have the effect of

Multiple Choice

˙

increasing expenses.

˙

increasing assets.

˙

decreasing total revenue.

increasing total revenue.

˙

Kay Sadia sold merchandise for $7,200 subject to 8% sales tax.˙ The entry in the general journal to record the sale will include:

Multiple Choice

˙

a debit to Sales Tax Payable for $576.00.

˙
credit to Sales for $7,200.00.

˙

a debit to Accounts Receivable for $7,200.00.


a credit to Sales for $7,776.00.

˙
On Deck Sports Memorabilia store sells a Babe Ruth rookie card for $6,400 on account.˙ If the sales tax on the sale is 8%, the journal entry to record the sale would include:

Multiple Choice

˙
a debit to Accounts Receivable for $6,912

˙

a credit to Sales for $6,912


a debit to Sales for $6,400

˙

a debit to Sales Tax Payable for $512

A credit policy that is too tight may result in

Multiple Choice


high level of losses at the expense of increases in sales volume.

˙
high level of losses at the expense of decreases in sales volume.

˙

low level of losses at the expense of decreases in sales volume.

˙

low level of losses at the expense of increases in sales volume.

On Deck Sports Memorabilia store sells a Babe Ruth rookie card for $6,400 on account. If the sales tax on the sale is 8%, what is the amount debited to Accounts Receivable.

Multiple Choice

$5,888

˙

$6,912

˙
$6,400

$6,512

˙

A schedule of accounts receivable is prepared

Multiple Choice

˙

monthly.

˙˙

weekly.

˙


daily.

˙
yearly.

˙

All of the following are situations that can cause accounts receivable to become uncollectible, except

Multiple Choice

˙
unexpected business developments.

˙
errors of judgment.

˙

efficient business practices.

˙
in financial data.

Hugh Snow, the buyer, returned merchandise to Farley Co., the seller.˙ The entry on the books of Farley company to record the return of merchandise from Hugh Snow would include a:

Multiple Choice

˙
debit to Sales Returns and Allowances and a credit to Account Receivable.

˙
debit to Sales and a credit to Sales Returns and Allowances.

˙

debit to Sales Discounts and a credit to Accounts Receivable.


debit to Accounts Payable and a credit to Sales Returns and Allowances.

˙

On June 12, Candy Suppliers sells $5,000 of goods on account to a credit customer with credit terms 1/10, n/30. Assume the sale is not subject to tax. On June 15, the customer returned $500 of the goods due to defect. Assume the customer pays within the discount period, select the˙ entry to record the receipt of the customer?s payment:

Multiple Choice

˙
Cash˙˙˙˙˙ ˙˙˙˙ 4,455

Sales Discounts˙˙ ˙˙˙˙ 45

Accounts Receivable ˙˙˙˙ ˙˙˙˙˙ ˙˙˙˙˙ 4,500

________________________________________

˙
Cash˙˙˙˙˙ ˙˙˙˙ 5,000

Accounts Receivable ˙˙˙˙ ˙˙˙˙˙ ˙˙˙˙˙ 5,000

________________________________________

˙

Cash˙˙˙˙˙ ˙˙˙˙ 4,950

Sales Discounts˙˙ ˙˙˙˙ 50

Accounts Receivable ˙˙˙˙ ˙˙˙˙˙ ˙˙˙˙˙ 5,000

________________________________________

˙

Accounts Receivable ˙˙˙˙ 4,500

Sales Discounts˙˙ ˙˙˙˙ 50

Cash˙˙˙˙˙ ˙˙˙˙ ˙˙˙˙˙ ˙˙˙˙˙ 4,550

________________________________________


___________ are required to collect sales tax from customers, make periodic payments to the taxing authority, and pay the taxes due when reports are filed.

Multiple Choice

˙

Manufacturers

˙

Wholesalers

˙
Retailers

˙˙

Distributors

˙
All of the following are examples of the most common types of credit sales, except

Multiple Choice

˙

cards issued by credit card companies.

˙
business credit cards.

˙

closed-account credit cards.

˙
bank credit cards.

˙
The Sales account is classified as

Multiple Choice

˙
a contra revenue account.

an asset account.

˙

a revenue account.

˙

a liability account.

˙

The entry to record the return of merchandise from a customer on which sales tax was charged includes

Multiple Choice


a debit to Sales Tax Payable.

˙

a debit to Accounts Receivable.

˙

a credit to Sales Tax Payable.


a credit to Sales Returns and Allowances.

˙
If a firm had sales of $84,000 during a period and sales returns and allowances of $6,000, its net sales were

Multiple Choice

˙

$6,000.

˙

$90,000.

˙

$84,000.

˙

$78,000.

˙

A retailer recorded the following in June: cash sales $2,000; credit sales, $9,000; sales returns and allowances, $1,000. Assuming the sales tax rate is 8 percent, the entry to record the sales tax payment includes a debit to Sales Tax Payable for

Multiple Choice


$720.

˙

$880.

˙

$640.

˙

$800.

˙

A credit policy that is too lenient may result in

Multiple Choice

˙

increased sales volume accompanied by a high level of losses.

˙

decreased sales volume accompanied by a low level of losses.

˙
increased sales volume accompanied by a low level of losses.

˙

decreased sales volume accompanied by a high level of losses.

˙
On October 12, Equipment Inc. sells $53,000 worth of equipment on account to a credit customer with credit terms of 1/10, n/30. Assume the sale is not subject to tax. Select the˙ entry to record the sale on Oct 12.

Multiple Choice

˙

Sales˙˙˙˙˙ ˙˙˙˙ 53,000

Sales Discounts˙˙ ˙˙˙˙ ˙˙˙˙˙ ˙˙˙˙˙ 530

Accounts Receivable ˙˙˙˙ ˙˙˙˙˙ ˙˙˙˙˙ 52,470

________________________________________

˙

Accounts Receivable ˙˙˙˙ 53,000

Sales Discounts˙˙ ˙˙˙˙ ˙˙˙˙˙ ˙˙˙˙˙ 530

Sales˙˙˙˙˙ ˙˙˙˙ ˙˙˙˙˙ ˙˙˙˙˙ 52,470

________________________________________

˙

Accounts Receivable ˙˙˙˙ 53,000

˙

Sales˙˙˙˙˙ ˙˙˙˙ ˙˙˙˙˙ ˙˙˙˙˙ 53,000

________________________________________

˙


Cash˙˙˙˙˙ ˙˙˙˙ 53,000

Sales˙˙˙˙˙ ˙˙˙˙ ˙˙˙˙˙ ˙˙˙˙˙ 53,000

________________________________________

A wholesale business sells goods with a list price of $800 and a trade discount of 36 percent. The net sales price is

Multiple Choice


$1,088.00.

˙

$512.00.

˙

$288.00.

˙

$800.00.

˙
The Sales Returns and Allowances account is reported

Multiple Choice

˙
on the income statement as an addition to Sales.

˙
on the balance sheet as a deduction from Capital.

˙

on the income statement as a deduction from Sales.

˙

on the balance sheet as a deduction from Accounts Receivable.

˙

˙

˙

Which of the following is a common example of the distribution channel?

Multiple Choice

˙

Customer sells to Wholesaler who sells to Retailer who sells to Wholesaler

˙

Manufacturer sells to Wholesaler who sells to Retailer who sells to Customer

˙

Manufacturer sells to Customer who sells to Wholesaler who sells to Retailer

˙

Manufacturer sells to Retailer who sells to Wholesaler who sells to Customer

˙

Which of the following is not one of the three basic types of businesses?

Multiple Choice

˙

Service


Manufacturing

˙

International

˙

Merchandising

ACC 291T Week 1 Practice: Connect? Knowledge Check

˙

ACC 291T Week 1 Apply: Connect? Exercise

Review the Knowledge Check in preparation for this assignment.

Complete the Week 1 Exercise in Connect?.

Note: You have only one attempt available to complete this assignment.

Grades must be transferred manually to eCampus by your instructor. Don?t worry, this might happen after your due date

If Lacy?s Department Store charges 8 percent sales tax, the amount of sales tax collected on a $525 sale would be

Multiple Choice

?

$4.20.

?

$420.00.

?

$42.00.

?

$567.00.

___________ are required to collect sales tax from customers, make periodic payments to the taxing authority, and pay the taxes due when reports are filed.

Multiple Choice

?

Wholesalers

?

Retailers

?

Manufacturers

?

Distributors

The Sales Returns and Allowances account is classified as

Multiple Choice

?

an asset account.

?

a contra asset account.

?

a contra revenue account.

?

a revenue account.

The amount used by wholesalers to record sales in the general journal is

Multiple Choice

?

the retail price.

?

the net price.

?

the list price.

?

the original price.

Which of the following describes the Sales Tax Payable account?

Multiple Choice

?

A liability account with a normal credit balance.

?

A liability account with a normal debit balance.

?

A revenue account with a normal credit balance.

?

An asset account with a normal debit balance.

Which of the following describes the Sales Returns and Allowances account?

Multiple Choice

?

A revenue account with a normal credit balance.

?

An expense account with a normal debit balance.

?

A contra expense account with a normal debit balance.

?

A contra revenue account with a normal debit balance.

The amount of the trade discount taken by the customer is:

Multiple Choice

?

recorded as an expense.

?

recorded as a revenue.

?

recorded as a liability.

?

not recorded directly as sales are recorded net of trade discounts.

Kay Sadia sold merchandise for $7,200 subject to a 8% sales tax. The entry in the general journal will include a debit to Accounts Receivable for:

Multiple Choice

?

$6,624.00.

?

$7,200.00.

?

$7,776.00.

?

$12,960.00.

Modern Candy, a wholesaler, sold a crate of candy for $360.00 on account to a customer with credit terms of 1/10, n/30. If the customer pays within the discount period, what would be the total amount credited to the sales account?

Multiple Choice

?

$360.00

?

$356.40

?

$363.60

?

$324.00

Kay Sadia sold merchandise for $7,200 subject to 8% sales tax. The entry in the general journal to record the sale will include:

Multiple Choice

?

a debit to Sales Tax Payable for $576.00.

?

credit to Sales for $7,200.00.

?

a credit to Sales for $7,776.00.

?

a debit to Accounts Receivable for $7,200.00.

ACC 291T Week 1 Apply: Connect? Exercise

˙

ACC 291T Week 2 Practice: Connect? Knowledge Check
˙

Complete˙the Week 2 Knowledge Check in Connect?.

Note:˙You have˙unlimited attempts˙available to complete this practice assignment. The highest scored attempt will be recorded.

These assignments have earlier due dates, so plan accordingly.

Grades must be transferred manually to eCampus by your instructor. Don?t worry, this might happen after your due date.

˙

Assuming a periodic inventory system is used, freight charges on merchandise purchases should be debited to:

Multiple Choice

˙

the creditor?s account in the subsidiary ledger.

˙

the Freight In account.

˙

the Purchases account.

˙

the Accounts Payable account.

˙
Which of the following statements is ?

Multiple Choice

˙

Purchases Discounts is a contra expense account with a normal credit balance.

˙

Purchases Discounts is a revenue account with a normal credit balance.

˙

Purchases Discounts is an asset account with a normal credit balance.

˙

Purchases Discounts is an expense account with a normal debit balance.

˙
Which of the following statements is ?

Multiple Choice

˙
The person who ordered the goods should also authorize payment.

˙
Purchase requisitions do not need to be printed on pre-numbered forms.

˙

Calculations on an invoice are assumed to be˙ if computer generated.

˙

Purchases should be made only after receiving proper written authorization.

˙
On Oct 1, Jerry?s Lighting purchased merchandise with a list price of $5,000 with credit terms of 1/10, n/30. On Oct 3, Jerry?s returns $500 of the merchandise. Assuming a periodic inventory system is used and Jerry?s pays the remaining amount owed on the purchase within the discount period, Jerry?s journal entry to record the payment, would include:

Multiple Choice

˙

a debit to Accounts Receivable for $4,500.

˙

a debit to Purchase Discounts for $45.

˙

a debit to Accounts Payable for $4,500.

˙

a debit to Merchandise Inventory for $45.

˙

When a payment is due is determined by the invoice date and the:

Multiple Choice

˙
transportation schedule.

˙

accounting cycle.

˙
credit terms.

˙

delivery date.

˙
Which of the following statements is ?

Multiple Choice

˙˙

The credit terms, 2/10, n/30, allow the customer to take a 2 percent discount if payment is made within 10 days of the invoice, otherwise payment is due in full in 30 days.

˙

The Purchases account is reported as an asset on the balance sheet.

˙

The purchase requisition is the form sent to a supplier to order goods.

˙

To the customer, a supplier?s invoice is a sales invoice.

The Purchases account is:

Multiple Choice

˙

a subsidiary account.

˙

a liability account.

˙

a temporary account.

˙

a permanent account.

˙

˙

˙

Postings to the accounts payable ledger should be made:

Multiple Choice

daily.

˙
monthly.

˙

at the end of the fiscal period.

˙

weekly.

˙
Tune Tones Instrument Tuning Company owes Mandy Lynn?s Music Studio $6,854 as of November 1. During November, Tune Tones purchased merchandise from Mandy Lynn totaling $9,548 and made payments on account to Mandy Lynn in the amount of $7,250. The amount Tune Tones owes Mandy Lynn on November 30 is:

Multiple Choice

˙

$4,556.

˙
$9,152.
˙

$9,548.


$6,854.

˙
The total of the balances in the creditors? accounts should agree with the balance of:

Multiple Choice

˙

the Sales account in the general ledger.

˙

the Purchases account in the general ledger.

˙
the Accounts Receivable account in the general ledger.

˙

the Accounts Payable account in the general ledger.

˙

On Sept. 1, Jerry?s Lighting purchased merchandise with a list price of $7,600 with credit terms of 1/10, n/30. On Sept. 3, Jerry?s returns $900 of the merchandise. If payment is made within the discount period, the total amount paid by Jerry?s Lighting is:

Multiple Choice

˙


7,600.

˙
6,633.


6,700.

7,524.

˙
The objective of internal control of purchases is to:

Multiple Choice

˙
create more organized invoices.



create a disciplined work environment.

˙
make the sales process more complex.

˙
create written proof that purchases and payments are authorized.


Purchases is a temporary _______ account.

Multiple Choice

˙

liability

˙
expense

˙

revenue

˙
asset

˙

Which of the following accounts has a normal debit balance?

Multiple Choice

˙

Accounts Payable

˙
Sales

˙

Purchases

˙

Purchase Returns


If a business pays $1,100 on account to a creditor, the effect of the payment is a decrease to cash and a:

Multiple Choice

˙
increase of capital.

˙

decrease to accounts payable.

˙
decrease to accounts receivable.

˙

decrease to Fees Income.

˙

On April 5, Fair Coffee, Inc. purchased merchandise with a list price of $1,000 and credit terms 2/10, n/30. On April 6, Fair Coffee returns $200 of the merchandise. Assuming Fair Coffee uses a perpetual inventory system, their journal entry on April 5, to record the purchase, would include:

Multiple Choice

a debit to Accounts Payable for $1,000.

a debit to Merchandise Inventory for $1,000.

a credit to Merchandise Inventory for $16.

˙

a debit to Purchases for $1,000.

˙
When merchandise is ordered, the purchasing department issues a form called:

Multiple Choice


a purchase requisition.

˙
a sale invoice.

˙
a purchase invoice.

˙
a purchase order.

˙

The total of the individual creditor accounts in the subsidiary ledger must ________ the balance of the Accounts Payable control account.

Multiple Choice

˙

be subtracted from

˙

be greater than

˙

be equal to

˙

be less than

˙
Assuming a periodic inventory system is used, the journal entry to record the purchase of merchandise on account for $2,750 with freight of $125 prepaid and added to the invoice is:

Multiple Choice

debit Purchases $2,750; credit Accounts Payable $2,750.



debit Accounts Payable $2,875, credit Freight in $125; credit Purchases $2,750.

˙

debit Accounts Receivable $2,875; credit Sales $2,875.

debit Purchases $2,750, debit Freight In $125; credit Accounts Payable $2,875.

˙

The source document for recording a purchase of merchandise on credit is:

Multiple Choice

˙

the purchase invoice.

˙
the purchase order.

˙

the purchase requisition.

˙
the receiving report.


On April 5, Fair Coffee, Inc. purchased merchandise with a list price of $1,000 and credit terms 2/10, n/30. On April 6, Fair Coffee returns $200 of the merchandise. Assuming Fair Coffee uses a perpetual inventory system, the journal entry on April 6, to record the return, would be:

˙

DEBIT˙ ˙˙˙˙ CREDIT

˙

A) Accounts Payable ˙˙˙˙ 200
˙˙

Cash˙˙˙˙˙ ˙˙˙˙ ˙˙˙˙˙ ˙˙˙˙˙ 200

˙

B) Accounts Payable ˙˙˙˙ 200
˙
Purchase Returns and Allowances˙ ˙˙˙˙ ˙˙˙˙˙ ˙˙˙˙˙ 200


C) Purchase Returns and Allowances ˙˙˙˙ 200
˙
Accounts Payable˙˙˙˙˙ ˙˙˙˙ ˙˙˙˙˙ ˙˙˙˙˙ 200

D) Accounts Payable ˙˙˙˙ 200
˙

Merchandise Inventory˙˙˙˙ ˙˙˙˙ ˙˙˙˙˙ ˙˙˙˙˙ 200

________________________________________

Multiple Choice

˙˙

Option B.

˙
Option D.

˙

Option A.

˙
Option C.

˙
On Jan. 3, Gourmet Cakes sold $15,000 of merchandise, on account with terms 2/10, n/30, to Jerry Hines. Assuming that the original cost of the merchandise to Gourmet Cakes was $4,000 and the perpetualinventory system is used, the journal entry on Jan. 3, to record the sale, would be:

˙

DEBIT˙ ˙˙˙˙ CREDIT

˙
A) Sales ˙˙˙˙ 15,000
˙

Accounts Receivable/J.Hines˙˙ ˙˙˙˙ ˙˙˙˙˙ ˙˙˙˙˙ 15,000

˙
B) Accounts Receivable/J.Hines ˙˙˙˙ 15,000
˙
Sales˙˙˙˙˙ ˙˙˙˙ ˙˙˙˙˙ ˙˙˙˙˙ 15,000

Cost of Goods Sold˙˙ ˙˙˙˙ 4,000

Merchandise Inventory˙˙˙˙ ˙˙˙˙ ˙˙˙˙˙ ˙˙˙˙˙ 4,000

˙
C) Accounts Payable/J.Hines 15,000
˙


Sales˙˙˙˙˙ ˙˙˙˙ ˙˙˙˙˙ ˙˙˙˙˙ 15,000

Merchandise Inventory˙˙˙˙ ˙˙˙˙ 4,000

Cost of Goods Sold˙˙ ˙˙˙˙ ˙˙˙˙˙ ˙˙˙˙˙ 4,000

˙

D) Accounts Receivable/J.Hines ˙˙˙˙ 15,000
˙
Sales˙˙˙˙˙ ˙˙˙˙ ˙˙˙˙˙ ˙˙˙˙˙ 11,000

Cost of Goods Sold˙˙ ˙˙˙˙ ˙˙˙˙˙ ˙˙˙˙˙ 4,000

________________________________________

Multiple Choice

˙
Option C.

˙

Option D.

˙
Option A.

˙

Option B.

During March a firm purchased $22,650 of merchandise and paid freight charges of $1,720. If the net delivered cost of purchases for the March is $21,900, what is the total purchase returns for March?

Multiple Choice

˙

$970

˙
$3,440

˙

$0

˙

$2,470

˙

The amount of the purchases for a period is presented in:

Multiple Choice

˙

the Revenue section of the income statement.


the Liabilities section of the balance sheet.

˙
the Operating Expenses section of the income statement.

the Cost of Goods Sold section of the income statement.

˙

Assuming a periodic inventory system, the journal entry to record the purchase on account of $900 of merchandise with freight of $65 prepaid and added to the invoice is:

Multiple Choice

˙

debit Purchases $965; credit Accounts Payable $965.

˙

debit Accounts Payable $965, debit Freight in $65; credit Purchases $900.

˙
debit Purchases $900, debit Freight in $65; credit Accounts Payable $965.


debit Accounts Receivable $965; credit Sales $965.

˙Assuming a periodic inventory system is used, the entry to record a purchase of merchandise on credit includes:

Multiple Choice

˙

a debit to Accounts Payable and a credit to Purchases.

˙

a debit to Purchases and a credit to Accounts Receivable.

˙

a credit to Purchases and a credit to Accounts Payable.

˙
a debit to Purchases and a credit to Accounts Payable.

On Sept. 1, Jerry?s Lighting purchased merchandise with a list price of $12,500 with credit terms of 3/5, n/60. On Sept. 3, Jerry?s returns $1,300 of the merchandise. If payment is made within the discount period, the total amount paid by Jerry?s Lighting is:

Multiple Choice

˙

11,200.

˙

12,125.

˙

10,864.

˙

10,640.

˙

Assuming a periodic inventory system is used, identify the statement below that is ?

Multiple Choice

˙

Freight charges that are listed on the invoice received from a supplier are not part of the total credit to Accounts Payable to record the credit purchase.

˙

Another name that may be used for the Freight In account is ?Transportation In.?

˙

Freight In is subtracted from Purchases to arrive at delivered cost of purchases.

None of these statements are .

˙
Freight ? In is a(n) _________ account.

Multiple Choice

˙

revenue

˙

liability

˙

expense

˙
asset

˙

On April 5, Fair Coffee, Inc. purchased merchandise with a list price of $1,000 and credit terms 2/10, n/30. On April 6, Fair Coffee returns $200 of the merchandise. Assuming Fair Coffee uses a perpetual inventory system, the journal entry on April 13, to record the payment of the amount owed, would be:

˙

DEBIT˙ ˙˙˙˙ CREDIT

˙

A) Accounts Payable ˙˙˙˙ 1,000
˙

Cash˙˙˙˙˙ ˙˙˙˙ ˙˙˙˙˙ ˙˙˙˙˙ 1,000

˙

B) Accounts Reveivable 1,000
˙

Sales Discounts˙˙ ˙˙˙˙ ˙˙˙˙˙ ˙˙˙˙˙ 16

Cash˙˙˙˙˙ ˙˙˙˙ ˙˙˙˙˙ ˙˙˙˙˙ 984

˙˙

C) Accounts Payable ˙˙˙˙ 800
˙

Merchandise Inventory˙˙˙˙ ˙˙˙˙ ˙˙˙˙˙ ˙˙˙˙˙ 16

Cash˙˙˙˙˙ ˙˙˙˙ ˙˙˙˙˙ ˙˙˙˙˙ 784

˙

D) Accounts Payable ˙˙˙˙ 800
˙

Purchase Discounts˙˙˙ ˙˙˙˙ ˙˙˙˙˙ ˙˙˙˙˙ 16

Cash˙˙˙˙˙ ˙˙˙˙ ˙˙˙˙˙ ˙˙˙˙˙ 784

________________________________________

Multiple Choice

˙

Option D.

˙

Option A.

˙
Option B.

Option C.

ACC 291T Week 2 Practice: Connect? Knowledge Check

˙

ACC 291T Week 2 Apply: Connect? Exercise

Review the Knowledge Check in preparation for this assignment.

Complete the Week 2 Exercise in Connect?.

Note: You have only one attempt available to complete this assignment.

Grades must be transferred manually to eCampus by your instructor. Don?t worry, this might happen after your due date

Credit terms of 2/10, n/45 mean:

Multiple Choice

payment in full is due 2 days after date of the invoice.

?

if the invoice is paid within 10 days of its date, a 2% discount may be taken; otherwise the total amount is due in 35 days.

?

if the invoice is paid within 10 days of its date, a 2% discount may be taken; otherwise the total amount is due in 45 days.

?

payment in full is due 45 days after date of the invoice with no discount offered.

Assuming a periodic inventory system is used, the entry to record a return of merchandise purchased on credit would:

Multiple Choice

?

debit Purchases Returns and Allowances and credit Accounts Receivable.

?

debit Purchases Returns and Allowances and credit Purchases.

?

debit Purchases and credit Purchases Returns and Allowances.

?

debit Accounts Payable and credit Purchases Returns and Allowances.

Assuming a periodic inventory system is used, freight charges on merchandise purchases should be debited to:

Multiple Choice

?

the creditor?s account in the subsidiary ledger.