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Creating, recording, and posting a debit memorandum for purchase returns when GST or HST

Creating, recording, and posting a debit memorandum for purchase returns when GST or HST

 Creating, recording, and posting a debit memorandum for purchase returns when GST or HST is included.

 

1) All controlling accounts must have a

A) revenue ledger.

B) general ledger.

C) subsidiary ledger.

D) journal.

2) The ledger containing all the balance sheet and income statement accounts is the

A) general ledger.

B) accounts payable subsidiary ledger.

C) accounts receivable subsidiary ledger.

D) payroll ledger.

 

3) Entries to customers' accounts for sales made with 13% HST are recorded in the

A) accounts receivable subsidiary ledger.

B) accounts payable subsidiary ledger.

C) fixed asset subsidiary ledger.

D) cash subsidiary ledger.

 

4) A characteristic of a schedule of accounts receivable is that

A) it contains a list of vendor names with balances.

B) the total is equal to the accounts receivable control account at the end of the month.

C) it is prepared at the end of the month.

D) Both B and C are correct.

 

5) Which of the following statements about subsidiary ledgers is most accurate?

A) The subsidiary ledger accounts will show details of any HST billed.

B) The accounts receivable subsidiary ledger is a book of accounts that provides supporting detail for Accounts Receivable.

C) The subsidiary ledger accounts will total the amount in the Sales account.

D) All of these answers are correct.

 

6) The accounts payable subsidiary ledger

A) lists accounts alphabetically.

B) lists accounts with which the company does business on a regular basis.

C) has a controlling account in the general ledger.

D) All of the above are correct.

 

7) The sales for a year were $100,000 and 13% HST. Therefore, the balances in the subsidiary ledger should be $113,000.

8) Individual invoice amounts, including HST, are recorded during the month to the accounts payable ledger.

 

9) What should always be done after creating the schedule of accounts receivable?

 

10) Following is the Schedule of Accounts Payable for London Warehouse. Considering GST of 5% is charged on each invoice, what is a breakdown of Purchases and GST Paid for each creditor?

 

Schedule of Accounts Payable

J. Bentley$1,575.00

P. Anders 2,429.70

N. Cassels 5,008.50

Total$9,013.20

Tripti 06-Dec-2019

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