Preparing schedules of accounts receivable and accounts payable, and balancing to control
Preparing schedules of accounts receivable and accounts payable, and balancing to control accounts.
1) Jackson purchased $400 plus 13% HST of goods and received credit terms of 2/10, n/30. How much did he pay if payment was made during the discount period?
2) Bruno's Fashions bought 60 nose-rings for $20 each on account. The invoice included $54 GST and payment terms of 2/10, n/30. Ten nose-rings were returned prior to payment. The entry to record the payment (within the discount period) would include
A) a credit to Cash for $1,050.
B) a credit to Cash for $1.030.
C) a credit to Accounts Receivable for $1,200.
D) a credit to Purchases for $1,000.
3) A cash payments journal and a cash disbursements journal are the same thing.
4) A list showing the ending balances owed to individual suppliers includes any HST paid.
5) Purchases discounts are usually not taken on PST or HST.
6) Trade discounts are not subject to HST.
7) On September 6, Mark purchased merchandise for his electronic games store. The invoice was for $35,000 plus freight of $750, plus HST at 13%, terms 2/15, n/30. The freight was included on the invoice. On September 10, Mark returned merchandise that cost $5,000 for credit. On September 19, Mark paid the amount owed. Fill in the blanks below.
a) The credit to Accounts Payable on September 6 is ________________.
b) The debit to Freight-In on September 6 is ________________.
c) The debit to Accounts Payable on September 10 is ________________.
d) The credit to Purchases Discount on September 19 is ________________.
e) The credit to Cash on September 19 is ________________.