A list of creditors with ending balances is called
A) a Schedule of Accounts Receivable.
B) a Schedule of Accounts Payable.
C) a list of suppliers.
D) a trade list.
12) Discounts which reduce the price for customers who buy items for resale or to produce other goods are
A) purchase discounts.
B) purchases returns and allowances.
C) trade discounts.
D) cash discounts.
13) What is the price of the merchandise if the list price is $800, trade discount is 40%, and the terms are 2/10, EOM?
14) The entry to record a payment sent on a $900 account within the 1% discount period would include a
A) debit to Accounts Payable for $900.
B) debit to Accounts Payable for $891.
C) credit to Purchases for $909.
D) debit to Cash for $891.
15) How much money would Sanji Company have to pay if purchases on account were $600 plus $50 for freight and the debt was paid within the discount period with terms of 2/10, n/30?
16) A trade discount would
A) have no effect on the books.
B) decrease the amount of the purchase discount.
C) increase the amount of the purchase discount.
D) need approval from senior management.
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