ch05_tb_so7 - CHAPTER 5 Test Bank: Study Objective 7...

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CHAPTER 5 Test Bank: Study Objective 7 TRUE-FALSE STATEMENTS AND SOLUTIONS 49. Under the periodic system, when a customer returns goods, the purchases returns and allowances is debited. 50. Under the periodic inventory system, acquisitions of merchandise are not recorded in the merchandise inventory account. Answers to True-False Statements 1. T 9. T 17. T 25. F 33. F 41. T 49. F 2. F 10 F 18. T 26. T 34. T 42. T 50. T 3. F 11. F 19. F 27. F 35. T 43. F 51. F 4. T 12. F 20. F 28. T 36. T 44. F 52. F 5. F 13. T 21. T 29. F 37. F 45. T 6. T 14. T 22. T 30. T 38. F 46. T 7. T 15. T 23. F 31. T 39. F 47. T 8. F 16. T 24. F 32. T 40. F 48. T No Multiple-Choice, Brief Exercises, or Completion Statements for Study Objective 7. EXERCISES AND SOLUTIONS Ex. 202 June 4 Brige Company purchased $4,000 worth of merchandise, terms n/30 from Sandson Company. The cost of the merchandise was $2,500. 12 Brige returned $600 worth of goods to Sandson for full credit. The goods had a cost of $375 to Johnson. 12 Brige paid the account in full. Instructions Prepare the journal entries to record these transactions in (a) Brige’s records and (b) Sandson’s records. Assume use of the periodic inventory system for both companies.
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ch05_tb_so7 - CHAPTER 5 Test Bank: Study Objective 7...

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