10 Questions
What is the total amount of the credit invoice received from Drug Wholesale?
494.94
Under what terms of sale does the buyer receive a 2% discount if the bill is paid within 10 days?
2/10,n/30
What is the amount of HST Recoverable from the original purchase?
149.11
What is the journal entry for the credit invoice received from Drug Wholesale?
Accounts Payable 494.94, Purchases Returns and Allowances 438.00, HST Recoverable 56.94
What is the total amount of the original purchase?
1296.11
When does the buyer need to pay the full amount of the invoice under Net 30 terms of sale?
30 days after the date of the invoice
What is the purpose of recording purchases returns and allowances?
To record the return of damaged goods
What is the amount of HST Recoverable from the credit invoice?
56.94
What is the amount of the damaged goods returned to Drug Wholesale?
438.00
Under what terms of sale is the buyer required to pay for the goods at the time of delivery?
COD or Cash on delivery
This quiz covers accounting procedures for a merchandising business, including inventory management and freight-in costs. Learn how to calculate cost of goods sold and manage transportation charges.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
