ACC CHAPTER 6 AND 13

Amina returned goods to Nadia. Which document did Amina issue?

• credit note

• debit note

• invoice

• statement of account

Amber sells goods on credit to Bashir. Which statement is correct about a credit note?

• It is sent by Amber when Bashir buys goods.

• It is sent by Amber when Bashir returns goods.

• It is sent by Bashir when he buys goods.

• It is sent by Bashir when he returns goods.

^{Elzevir had been in business for only four months when a fire destroyed all of his inventory. In that period his sales were $1200. He paid $820 to suppliers and a supplier’s invoice for $70 was unpaid. His cost of sales was $800. What was the cost of the inventory which was destroyed?}

• $50

• $310

• $90

• $380

Zodwa sold goods on credit to Elspeth.Which document did Elspeth issue when she returned these goods?

• Credit note

• statement

• invoice

• debit note

^{Antony decided to write off $300 owed by Mariam. He debited Mariam’s account and credited the provision for doubtful debts account, both with $300. Which entries are needed to correct the error?}

• Debit entry:Bad debts $300

  Credit entry: Mariam $300

• Debit entry:Bad debts $300

  Provision for doubtful debts $300

  Credit entry:Mariam $600

• Debit entry:Provision for doubtful debts $300

  Credit entry:Bad debts $300

• Debit entry:Provision for doubtful debts $600

  Credit entry: Bad debts $300

  Mariam $300

Which business document would be sent by a customer to a supplier?

• credit note

• invoice

• debit note

• statement of account

Albert maintains a provision for doubtful debts account. Where is the closing balance on the account included in the financial statements?

• as an expense in the income statement

• in the current assets section of the statement of financial position

• as a revenue in the income statement

• in the current liabilities section of the statement of financial position

Yasmin sold goods to Zebedee. She sent an invoice for goods but later discovered that she had undercharged for the goods sold. Which document will Yasmin issue to correct her mistake?

• credit note

• debit note

• statement

• cheque

It was discovered that a credit customer had been charged $76 for a purchase instead of $67. Which document will be issued by the seller to correct the error?

• statement

• debit note

• invoice

• credit note

What is another name for a copy of a customer’s account in the sales ledger when it is sent to the customer?

• statement

• invoice

• credit note

• debit note