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The Purchases Discount account normally has a debit balance and is a contra-cost account.

The Purchases Discount account normally has a debit balance and is a contra-cost account.

The Purchases Discount account normally has a debit balance and is a contra-cost account.

 

53) The account Freight-In accumulates the shipping costs to the seller.

 

54) When the terms are F.O.B. shipping point, the buyer is responsible for the cost of shipping from the seller's shipping point to the purchaser's location but the title does not pass until it is delivered.

 

55) Purchases Discounts are not taken on freight costs.

 

56) The Purchases Returns and Allowances account normally has a credit balance.

 

57) A receiving report is used to notify the company of the quantity and condition of the goods received.

 

58) The seller's sales invoice is the buyer's purchase invoice.

 

59) Payment for merchandise should not be made until approval is given.

 

60) Purchase discounts are given to the buyer from the supplier for early payment on account.

61) An invoice approval form is used by accounting to check the invoice before approving it for payment.

Tripti 06-Dec-2019

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