38 in a firm that uses special journals the purchase of merchandise with terms of 2 4303572

 

 

38.In a firm that uses special journals, the purchase of merchandise with terms of 2/10, n/30 is recorded in the 
 
 

A. cash payments journal.

 

B. cash receipts journal.

 

C. purchases journal.

 

D. general journal.

 

 

 

 

39.In a firm that uses special journals, the return of damaged merchandise to a supplier and receipt of a credit memorandum is recorded in the 
 
 

A. cash payments journal.

 

B. cash receipts journal.

 

C. purchases journal.

 

D. general journal.

 

 

 

 

40.In a firm that uses special journals, the purchase of merchandise for $2,800, payable in 30 days, plus a freight charge of $140 is recorded in the 
 
 

A. cash payments journal.

 

B. cash receipts journal.

 

C. purchases journal.

 

D. general journal.

 

 

 

 

41.In a firm that uses special journals, the receipt of a credit memorandum from a supplier for merchandise that was damaged but can be sold at a reduced price is recorded in the 
 
 

A. cash payments journal.

 

B. cash receipts journal.

 

C. purchases journal.

 

D. general journal.

 

 

 

 

42.In a firm that uses special journals, the purchase of merchandise for cash is recorded in the 
 
 

A. cash payments journal.

 

B. cash receipts journal.

 

C. purchases journal.

 

D. general journal.

 

 

 

 

43.Credit terms of 1/10, n/30 mean that 
 
 

A. payment in full is due 10 days after date of the invoice.

 

B. a 1% discount may be taken for up to 30 days.

 

C. if the invoice is paid within 10 days of its date, a 1% discount may be taken; otherwise the total amount is due in 20 days.

 

D. if the invoice is paid within 10 days of its date, a 1% discount may be taken; otherwise the total amount is due in 30 days.

 

 

 

 

44.Check marks next to the individual amounts in the purchases journal mean that the amounts 
 
 

A. have been posted to the general ledger.

 

B. have been posted to the accounts payable subsidiary ledger.

 

C. have been posted to the accounts receivable subsidiary ledger.

 

D. do not need to be posted to any account.

 

 

 

 

45.Postings to the accounts payable ledger should be made 
 
 

A. daily.

 

B. weekly.

 

C. monthly.

 

D. at the end of the fiscal period.

 

 

 

 

46.A creditor's account in the accounts payable ledger has a $1,600 beginning balance. After a transaction for $700 is posted from the purchases journal, the balance of the creditor's account is 
 
 

A. $2,300 debit.

 

B. $900 credit.

 

C. $2,300 credit.

 

D. $900 debit.

 

 

 

47.The type of account and normal balance of Purchase Returns and Allowances is a(n) 
 
 

A. contra-revenue account, credit balance.

 

B. asset account, debit balance.

 

C. contra-cost of goods sold account, credit balance.

 

D. expense account, credit balance.