Assuming a periodic inventory system, the journal entry torecord the purchase on account of $1,070 of merchandise withfreight of $150 prepaid and added to the invoice is:
A. Debit purchases $1220; credit accounts payable $1220
B. Debit purchases $1070; debit freight in $150; credit accountspayable $1220
C. Debit accounts receivable $1220; credit sales $1220
D. Debit accounts payable $1220; debit freight in $150; creditpurchases $1070
Assuming a periodic inventory system, the journal entry torecord the purchase on account of $1,070 of merchandise withfreight of $150 prepaid and added to the invoice is:
A. Debit purchases $1220; credit accounts payable $1220
B. Debit purchases $1070; debit freight in $150; credit accountspayable $1220
C. Debit accounts receivable $1220; credit sales $1220
D. Debit accounts payable $1220; debit freight in $150; creditpurchases $1070
Related questions
1.) X sold Y merchandise on account FOB shipping point, 3/10,net 30, for $10,000. X prepaid the $200 shipping charge. Using theperpetual inventory method, which of the following entries will Ymake if Y pays within the discount period?
Accounts Payable-X, debit $9,900; Cash, credit $9,900 | |
Accounts Payable-X, debit $10,000; Transportation In, credit$200; Cash, credit $9,800 |
Accounts Payable-X, debit $9,700; Merchandise Inventory, debit$200; Cash, credit $9,900 | |
Accounts Payable-X, debit $9,700; Transportation In, debit $200;Cash, credit $9,900 |
2.) Merchandise with an invoice price of $4,000 is purchasedsubject to terms of 2/10, n/30, FOB destination. Transportationcosts paid by the seller totaled $150. What is the cost of themerchandise, assuming the discount is taken?
$4,070 | |
$3,920 |
$4,067 | |
$4,150 |
3.) A sales invoice included the following information:merchandise price, $1,000; transportation, $200; terms 1/10, n/eom,FOB shipping point. Assuming that a credit for merchandise returnedof $300 is granted prior to payment, that the transportation isprepaid by the seller, and that the invoice is paid within thediscount period, what is the amount of cash received by theseller?
$693 | |
$893 |
$990 | |
$700 |
4.) X sold Y merchandise on account FOB shipping point, 2/10,net 30, for $10,000. X prepaid the $200 shipping charge. Which ofthe following entries does X make to record this sale?
Accounts Receivable debit $9,800; Sales credit $9,800; AccountsReceivable debit $200; Cash credit $200 | |
Accounts Receivable debit $10,400; Sales credit $10,400 |
Accounts Receivable debit $10,000; Sales credit $10,000 | |
Accounts Receivable debit $10,000; Sales credit $10,000;Transportation Out debit $200; Cash credit $200 |
4. XYZ Co. purchased $5,000 of inventory on account. Assumingthat XYZ Co. uses the perpetual inventory method, which of thefollowing entries would it make to record this transaction?
a. Debit purchases / credit accounts payable | ||
b. Debit accounts payable / credit purchases | ||
c. Debit accounts payable / credit inventory | ||
d. Debit inventory / credit accounts payable |
