POA@HGV_Grace_Chap 4_Journal Entries (with discounts)
Business
12th Grade
Used 18+ times
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11 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Prepare journal entries in the books of Ain Trading for the following transaction.
Bought inventory at list price $1000 on credit from Siti Trading. There was 10% trade discount as Ain Trading was a regular customer.
Dr Inventory $900
Cr Trade payable: Siti Trading $900
Dr Inventory $1000
Cr Trade payable: Siti Trading $1000
Dr Inventory $900
Cr Trade payable: Ain Trading $900
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Prepare journal entries in the books of Ain Trading for the following transaction.
Returned inventory previously bought on credit from Asyraf Trading. The list price of the inventory was $100 and there was 5% trade discount during purchase.
Dr Trade payable: Asyraf Trading $95
Cr Inventory $95
Dr Inventory $95
Cr Trade payable: Asyraf Trading $95
Dr Trade payable: Asyraf Trading $100
Cr Inventory $100
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Prepare journal entries in the books of Ain Trading for the following transaction.
Paid credit supplier Sally $4200 by cheque in full settlement of amount owing of $4210.
Dr Trade payable: Sally 4210
Cr Cash at bank $4200
Cr Discount received $10
Dr Trade payable: Sally 4210
Cr Cash at bank $4200
Dr Trade payable: Sally 4200
Cr Cash at bank $4200
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Prepare journal entries in the books of Ain Trading for the following transaction.
Paid credit supplier John by cheque after 2% cash discount. Ain Trading owed John $1000
Dr Trade payable: John $1000
Cr Cash at bank $980
Cr Discount received $20
Dr Trade payable: John $1000
Cr Cash at bank $1000
Dr Cash at bank $980
Dr Discount allowed $20
Dr Trade receivable: John $1000
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Prepare journal entries in the books of Ain Trading for the following transaction.
Sold inventory at list price $5000 to Xinyi on credit. These inventory cost $3000. Ain Trading gave Xinyi 10% trade discount as Xinyi purchased in bulk.
Dr Trade receivable: Xinyi $4500
Cr Sales revenue $4500
Dr Cost of sales $3000
Cr Inventory $3000
Dr Trade receivable: Xinyi $5000
Cr Sales revenue $5000
Dr Cost of sales $3000
Cr Inventory $3000
Dr Trade receivable: Xinyi $4500
Cr Sales revenue $4500
Dr Cost of sales $2700
Cr Inventory $2700
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Prepare journal entries in the books of Ain Trading for the following transaction.
Sara returned inventory of list price $400. These inventory was earlier sold to Sara on credit and 10% trade discount was given. The cost price of these inventory was $200.
Dr Sales returns $360
Cr Trade receivable: Sara $360
Dr Inventory $200
Cr Cost of sales $200
Cr Sales returns $360
Dr Trade receivable: Sara $360
Dr Inventory $180
Cr Cost of sales $180
Cr Sales returns $400
Dr Trade receivable: Sara $400
Dr Inventory $200
Cr Cost of sales $200
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Prepare journal entries in the books of Ain Trading for the following transaction.
Received cheque of $3995 from Mary in full settlement of amount owing of $4000. Ain Trading had earlier sold inventory to Mary on credit.
Dr Cash at bank $3995
Dr Discount allowed $5
Cr Trade receivable: Mary $4000
Dr Trade receivable: Mary $4000
Cr Cash at bank $3995
Cr Discount allowed $5
Dr Trade payable: Mary $4000
Cr Cash at bank $3995
Cr Discount received $5
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