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1 the entry to record the purchase of inventory on account in a perpetual inventory 4300738

 

1) The entry to record the purchase of inventory on account in a perpetual inventory system includes a debit to the Purchases account.

 

2) Purchase returns of merchandise decrease the liability to a creditor.

 

3) In a purchase discount, the larger the quantity of merchandise purchased, the lower the price per item.

4) Credit terms of 1/15 n/30 means the purchaser can deduct 1% of the invoice price if paid within 15 days.

 

5) Quantity discounts offered by suppliers for large shipments of inventory are always recorded separately.

 

6) FOB shipping point means that the title to the goods passes to the purchaser upon receipt of the goods and the seller is responsible for the cost of the freight.

 

7) Sales discounts is a contra account and has a normal credit balance.

 

8) When the seller accepts a return of undamaged goods from the purchaser, the seller's journal entries would include two entries, if they are using a perpetual inventory system.

9) A seller requesting payment will send the purchaser a purchase order.

 

10) The entry to record the return of $250 of inventory to a supplier under the perpetual inventory system is recorded with a debit to:

A) Accounts Payable and a credit to Purchases Discounts.

B) Purchases Returns and Allowances and a credit to Accounts Payable.

C) Accounts Payable and a credit to Inventory.

D) Inventory and a credit to Accounts Payable.

 

 

 

 

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