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The entry to record a purchase of $5,000 on account, terms of 2/10,...


The entry to record a purchase of $5,000 on account, terms of 2/10, n/30, would include a __________.
  A. debit to Purchases Discount for $100
  B. credit to Accounts Payable for $5,000
  C. debit to Accounts Payable for $5,000
  D. credit to Cash for $5,000




Returned merchandise under the periodic inventory method. This will be recorded with a __________.

  A. debit to Accounts Payable and a credit to Purchases Returns and Allowances
  B. debit to Merchandise Inventory and a credit to Purchases
  C. credit to Accounts Payable and a debit to Merchandise Inventory
  D. debit to Accounts Payable and a credit to Merchandise Inventory


Tyler returned $500 worth of merchandise within the discount period. The entry to record the return is to __________.
  A. debit Purchases for $500; credit Accounts Payable $500
  B. debit Purchases for $500; credit Purchases Returns and Allowances $500
  C. debit Accounts Payable/Suppliers Name for $500; credit Purchases Returns and Allowances for $500
  D. debit to Accounts Payable for $500, credit Purchases Discount for $500

Medeco bought goods for $250 on credit. Medeco returned $50 worth of goods. Terms of the sale were 2/10, n/30. If Medeco pays the amount owed within the discount period, what is the amount they should pay?
  A. $250
  B. $204
  C. $196
  D. $200

Heidi’s Accessories bought 50 necklaces for $10 each on account. The invoice included a 6% sales tax and payment terms of 2/10, n/30. Five necklaces were returned prior to payment. The entry to record the purchase would include a __________.
  A. debit to Accounts Payable for $530
  B. debit to Accounts Payable for $500
  C. debit to Purchases for $530
  D. debit to Purchases for $500

The Accounts Payable subsidiary ledger __________.
  A. lists accounts alphabetically
  B. lists accounts for which the company owes money
  C. has a controlling account in the general ledger
  D. all of the above





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