41 the term used when the purchaser is responsible for the cost of freight is a f o 4303543

 

41) The term used when the purchaser is responsible for the cost of freight is:

A) F.O.B. shipping point.

B) F.O.B. destination.

C) Freight-In.

D) Purchases.

42) The term used when the seller is responsible for the cost of freight is:

A) F.O.B. shipping point.

B) F.O.B. destination.

C) Freight-In.

D) Purchases.

43) Hardware Restoration had net purchases of $55,000. If Purchases Returns and Allowances are $10,000 and Purchases Discounts are $1,500, what are gross purchases?

A) $38,500

B) $55,000

C) $66,500

D) $40,000

44) J&L Lumber reports Purchases of $66,000. If Purchases Returns and Allowances are $6,000 and Purchases Discounts are $1,500, what are the net Purchases?

A) $54,000

B) $52,500

C) $67,500

D) $58,500

45) Joyce's Accessories bought 60 necklaces for $10 each on account. The invoice included a 5% sales tax and payment terms of 2/10, n/30. In addition, 5 necklaces were returned prior to payment. The entry to record the purchase would include:

A) a debit to Accounts Payable for $530.

B) a debit to Accounts Payable for $500.

C) a debit to Purchases for $630.

D) a debit to Purchases for $500.

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

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

48) 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.

49) Purchases Discounts are not taken on the purchased merchandise plus freight.

50) The Purchases Returns and Allowances account normally has a debit balance.