Accounting Chapters 5-7

Question 1

Purchase of merchandise inventory

Answer 1

Debit: merchandise inventory
Credit: cash or accounts payable

Question 2

Purchase return

Answer 2

Debit: cash accounts payable
Credit: merchandise inventory

Question 3

Payment of freight in

Answer 3

Debit: merchandise inventory
Credit: cash

Question 4

Payment of merchandise inventory within the discount period

Answer 4

debit: accounts payable
Credit: cash
Credit: merchandise inventory

Question 5

Payment of merchandise inventory after discount period

Answer 5

Debit: accounts payable
credit: cash

Question 6

Sales of merchandise inventory are recorded at the met about(sales price less any discount)

Answer 6

Debit: cash or accounts recivable
debit: sales revenue

Debut: cost of goods sold
Credit: merchandise inventory

Question 7

Estimate the amount of merchandise inventory that will be returned

Answer 7

Debit: sales revenue
Credit: refunds payable

Debit: estimated returns inventory
Credit: cost of goods sold

Question 8

Return of merchandise inventory by customer

Answer 8

Debit: refunds payable
Credit: cash or accounts receivable

Debit: merchandise inventory
Credit: estimated returns inventory

Question 9

Sales allowance

Answer 9

Debit: refunds payable
Credit: cash or accounts receivable

Question 10

Payment of freight out

Answer 10

Debit: delivery expense
Credit: cash

Question 11

Collection of cash during discount period

Answer 11

Debit: cash
Credit: accounts receivable

Question 12

Collection of cash after discount period

Answer 12

Debit: cash
Credit: accounts receivable
Credit: sales discounts forfeited

Question 13

to open the petty cash fund

Answer 13

debit: petty cash
credit: cash

Question 14

to replenish the petty cash fund

Answer 14

debit: the expenses
credit/debit: cash short and over
credit: cash