Accounting - Chapter 11

It is necessary to total the columns of the General Journal.

• True

• False

Where do you draw a diagonal to show that two accounts will be posted in the transaction for buying supplies on account?

• In the Document Number column

• In the Debit column

• In the Credit column

• In the Post Reference column

Transactions that cannot be recorded in a _____________ journal are recorded in a ______________ journal.

• general, special

• cash payments, cash receipts

• special, general

• purchases, sales

What accounts are affected and how by buying store supplies on account?

• Debit to Purchases, Credit to Accounts Payable and the vendor

• Debit to Accounts Payable and the vendor, Credit to Supplies-Store

• Debit to Supplies-Store, Credit to Accounts Payable and the vendor

• Debit to Supplies-Store, Credit to Accounts Receivable and the customer

Which of the following is NOT a transaction that will be in the General Journal?

• Buying merchandise on account

• Purchases returns and allowances

• Buying supplies on account

• Correcting entries

A credit memorandum prepared by a customer results in the customer recording a debit to the vendor account.

• True

• False

What account is debited when we (the business) return merchandise to a vendor?

• Sales Returns and Allowances

• Accounts Payable and the vendor name

• Purchases Returns and Allowances

• Accounts Receivable and the customer name

A form prepared by the customer showing the price deduction taken by the customer for a return or an allowance.

• Debit Memorandum

• Memorandum

• Credit Memorandum

• Sales Invoice

Credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer's accounts payable to the vendor.

• Sales Return

• Sales Allowance

• Purchases Return

• Purchases Allowance

When merchandise is returned on account, what accounts are affected and how?

• Debit to Accounts Payable and the vendor, Credit to Purchases Returns and Allowances

• Debit to Purchases Returns and Allowances, Credit to Accounts Payable and the vendor

• Debit to Sales Returns and Allowances, Credit to Accounts Receivable and the customer

• Debit to Accounts Receivable and the customer, Credit to Sales Returns and Allowances