Chp 12: Trade Payables Flashcards
1
Q
State the journal entry when business bought goods/non-current asset on credit.
A
2
Q
Journal entry when business RETURN goods TO credit supplier.
A
3
Q
Journal entry when business PAID $70 TO CREDIT SUPPLIER IN FULL SETTLEMENT OF AMOUNT OWING $100.
A
4
Q
How would DISCOUNT RECEIVED affect PROFIT AND Trade Payable?
A
Discount received = INCOME–→ WILL INCREASE PROFIT
-→ Reduce Trade payable (owe lesser)
5
Q
Describe Jun 2 transaction
A
Business bought inventory costing $xx on credit from xx
6
Q
Describe Jun 3 transaction
A
Business returned inventory costing $500 previously bought on credit TO xx
7
Q
Describe Jun 4 transaction
A
Business PAID cheque of $950 to XX, after receiving a cash discount of $50.
