Recording to the accounts receivable subsidiary ledger. 1) If a display rack was purchas
Recording to the accounts receivable subsidiary ledger.
1) If a display rack was purchased for the store, which of the following accounts would be increased?
A) Store Equipment
2) When merchandise is bought for resale, which of the following accounts would be decreased?
A) Store Equipment
3) An entry to record the payment to a vendor was correctly recorded and posted to the general ledger but was not posted to the subsidiary ledger. This error will cause
A) net income to be overstated.
B) net income to be understated.
C) the accounts payable control account to not agree with the subsidiary ledger.
D) the accounts receivable control account to not agree with the subsidiary ledger.
4) Jackson purchased $400 of goods and received credit terms of 2/10, n/30. How much did he pay if payment was made during the discount period?
5) The entry to record a payment on a $500 account within the 2% discount period would include a
A) debit to Accounts Payable for $490.
B) debit to Accounts Payable for $500.
C) credit to Purchases for $510.
D) debit to Cash for $490.
6) Medeco bought goods for $150 on credit. Medeco returned $50 worth of goods. Terms of the sale were 2/10, n/30. If Medeco pays the amount owed within the discount period, what is the amount they should pay?
7) A list of creditors with balances owed is called
A) a schedule of accounts receivable.
B) a schedule of accounts payable.
C) a list of suppliers.
D) a trade list.
8) Which account is the controlling account for the amounts owed to individual creditors?
A) Accounts Payable in the general ledger
B) Accounts Receivable in the general ledger
C) Accounts Receivable in the subsidiary ledger
D) Accounts Payable in the subsidiary ledger
9) To prove the subsidiary ledger agrees with the Accounts Payable controlling account balance, complete a
A) debit memorandum.
B) schedule of accounts payable.
C) purchase order.
D) schedule of accounts receivable.
10) The special journal used to record all transactions involving payment of cash is a
A) Sales journal.
B) Cash Receipts journal.
C) Purchases journal.
D) Cash Payments journal.