Accounting Chapter 9 Review

The price a business pays for goods it purchases to sell to its customers is called

A purchases return should be recorded in

Business purchases $1000 of merchandise on account. What would you debit and credit?

Purchases Returns and Allowances has a

True or False:  The amount of a trade discount given to a customer is not journalized.

Purchases Returns and Allowances is a

Accounts Payable is a liability and therefore has a

All purchases of merchandise on account should be recorded in the

Returning merchandise to Crown Distributing would result in

Record debit and credit: Paid cash on account $980 covering $1000 invoice, less 2% discount $20

The account, Purchases Discount is a contra account to

Purchases Discount has a ______________ balance since it decreases the Purchases account

The Purchases account has a

What would you debit and credit here?  Purchased merchandise for cash.

A journal used to record only one kind of transaction is called

All payments of cash should be recorded in the

Cash Short and Over is classified as

Goods that a business purchases to sell are called

What journal would you record the following transaction in?  Purchased supplies on account.

A customer receiving 40% off the list price is an example of a

If the Petty Cash fund is 1.24 short you should

A deduction from the invoice amount allowed by a vendor to encourage early payment is called

The terms 2/10, n/30 mean that the buyer

The Petty Cash account is more likely to be cash short than cash over.

The Purchases Account is classified as