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Golf Shop on May 31 has the following account balances: Sales$11,000 HST Collected1,600

Golf Shop on May 31 has the following account balances: Sales$11,000 HST Collected1,600

Golf Shop on May 31 has the following account balances:

 

Sales$11,000

HST Collected1,600

Sales Returns and Allowances1,000

Purchases8,000

HST Paid1,090

Freight-In500

Purchases Returns and Allowances1,000

Purchases Discounts600

 

Based on the above, net purchases for the period are

A) $12,600.

B) $6,400.

C) $6,910.

D) $8,500.

 

7) What type of account is Purchases Discounts?

A) Liability

B) Contra asset

C) Contra cost/expense

D) Contra revenue

 

8) When a debit memorandum for returned merchandise for Moore Co. is recorded, the entry is

A) debit Accounts Payable, credit Purchases.

B) debit Purchases Returns and Allowances, credit Accounts Payable in the general ledger.

C) debit Accounts Payable Moore Co. in the accounts payable subsidiary ledger, debit Accounts Payable in the general ledger, credit Purchases Returns and Allowances.

D) debit Purchases, credit Accounts Payable.

9) Fiona's Bistro on May 31 has the following account balances:

 

Sales$78,000

HST Collected2,410

Sales Returns and Allowances1,500

Accounts Payable9,400

Purchases37,000

HST Paid875

Purchases Returns and Allowances2,200

Purchases Discounts1,850

 

Net purchases for the period are

A) $36,125.

B) $32,950.

C) $46,400.

D) $37,875.

 

10) Determine the amount of credit to be earned on a full return of merchandise purchased with an invoice price of $4,000 plus HST at 13% and credit terms of 2/10, n/30.

$________________

 

11) J. Frumm Co. has the following selected accounts. Use this information to answer the questions below.

 

Freight-In$150

Purchases Discount750

Purchases Returns and Allowances900

Purchases7,000

HST Paid1,620

Beginning Inventory1,200

Ending Inventory 2,100

 

Based on the above, net purchases are ________________.

12) Martha's Rug Company has the following selected accounts. Use this information to answer the questions below.

 

Sales Returns and Allowances$1,300

Sales Discounts1,100

Purchases15,000

HST Paid720

Sales42,000

HST Collected2,415

Purchases Discounts1,020

Purchases Returns and Allowances1,400

Freight-In920

Beginning Inventory7,650

Ending Inventory10,120

 

Based on the above, net purchases are ________________.

Tripti 06-Dec-2019

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