BA20 1.01

Accounts Payable/Douglas's Office Supplies, Accounts Payable/McKoy Equipment Company, and Accounts Payable/Sully Office Repair are all classified as:

• assets.

• revenue.

• liabilities.

• owner's equity.

Sunny Side Furniture received $250 cash from Vince Turner for payment on account. The journal entry for Sunny Side Furniture to record this transaction is:

• debit Cash, $250; credit Sales, $250.

• debit Sales, $250; credit Cash, $250.

• debit Cash, $250; credit Accounts Receivable/Vince Turner, $250.

• debit Accounts Receivable/Vince Turner, $250; credit Cash, $250.

In the transaction BOUGHT SUPPLIES ON ACCOUNT FROM WAKE SUPPLY CO., the source document is a/an:

• memorandum.

• check stub.

• invoice.

• receipt.

Sally's Pools paid cash on account to Chem-Cycle Supply, $882; covering Purchase Invoice No. 2514 for $900, less a 2% discount, $18. The journal entry for Sally's Pools to record this transaction is:

• debit Accounts Payable/Chem-Cycle Supply, $882; credit Cash, $882.

• debit Accounts Payable/Chem-Cycle Supply, $900; credit Purchase Discount, $18, Cash, $882.

• debit Purchases Discount, $18, Cash, $882; credit Accounts Payable/Chem-Cycle Supply, $900.

Sammy's Clothes purchased merchandise on account from Polly's Warehouse for $246. The journal entry for Sammy's Clothes to record this transaction is:

• debit Accounts Payable/Polly's Warehouse, $246; credit Purchases, $246.

• debit Accounts Receivable/Sammy's Clothes, $246; credit Purchases, $246.

• debit Purchases, $246; credit Accounts Payable/Polly's Warehouse, $246.

• debit Purchases, $246; credit Accounts Receivable/Polly's Warehouse, $246.

Ashton discovered that a sale on account to Paula Company on March 10 for $750 was incorrectly charged to Paul Company. The journal entry to correct this error is:

• debit Accounts Payable/Paul Company, $750; credit Accounts Payable/Paula Company, $750.

• debit Accounts Payable/Paula Company, $750; credit Accounts Payable/Paul Company, $750.

• debit Accounts Receivable/Paula Company, $750; credit Accounts Receivable/Paul Company, $750.

• debit Accounts Receivable/Paul Company, $750; credit Accounts Receivable/Paula Company, $750.

Ben's Barbershop's balance sheet contains no inventory account. This company would be classified as a:

• merchandising business.

• manufacturing business.

• construction business.

• service business.