Accounting Chapter 10.2: Merchandising Business Procedures
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Questions and Answers

What is the total amount of the credit invoice received from Drug Wholesale?

  • 149.11
  • 394.00
  • 494.94 (correct)
  • 438.00

    • Under what terms of sale does the buyer receive a 2% discount if the bill is paid within 10 days?

  • Net 30
  • Net 60
  • COD or Cash on delivery
  • 2/10,n/30 (correct)

    • What is the amount of HST Recoverable from the original purchase?

  • 56.94
  • 1147.00
  • 1296.11
  • 149.11 (correct)

    • What is the journal entry for the credit invoice received from Drug Wholesale?

    <p>Accounts Payable 494.94, Purchases Returns and Allowances 438.00, HST Recoverable 56.94</p> Signup and view all the answers

    What is the total amount of the original purchase?

    <p>1296.11</p> Signup and view all the answers

    When does the buyer need to pay the full amount of the invoice under Net 30 terms of sale?

    <p>30 days after the date of the invoice</p> Signup and view all the answers

    What is the purpose of recording purchases returns and allowances?

    <p>To record the return of damaged goods</p> Signup and view all the answers

    What is the amount of HST Recoverable from the credit invoice?

    <p>56.94</p> Signup and view all the answers

    What is the amount of the damaged goods returned to Drug Wholesale?

    <p>438.00</p> Signup and view all the answers

    Under what terms of sale is the buyer required to pay for the goods at the time of delivery?

    <p>COD or Cash on delivery</p> Signup and view all the answers

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