Merchandise Purchases

When we buy merchandise for resale, we _______ the account called _______

• credit, purchases

• debit, merchandise

• credit, merchandise

• debit, merchandise purchases

Which account is credited when we buy merchandise for cash?

• Accounts payable

• Accounts receivable

• Sales discounts

• Cash

1/10, net 60 means

• 10% discount if paid within 60 days

• 1% discount if paid within 60 days

• 10% discount if paid within 60 days

• 1% discount if paid within 10 days

The journal entry for taking a discount (on a purchase taken on credit) would include these accounts:

• Accounts Receivable, Sales Discount, Cash

• Accounts Payable, Sales Discount, Cash

• Accounts Payable, Purchase Discount, Cash

• None of these

Merchandise purchased on credit would include these accounts:

• Urns, Cash

• Caskets, Cash

• Emblaming fluid, Cash

• Merchandise Purchases, Accounts Payable

If we send an urn back to the vendor that we still owe money to, the accounts affected are:

• Urns, Cash

• Urns, Accounts Payable

• Accounts Payable, Purchase Returns and Allowances

• Purchase Returns and Allowances, Cash

What are the accounts affected when there is a separate freight charge for merchandise purchased on credit?

• Freight in, Cash

• Merchandise Purchases, Freight in, Cash

• Merchandise Purchases, Freight In, Accounts Payable

• Merchandise Purchases, Accounts Payable

______ are always entered last in the transaction

______ are always entered on the left side of the transaction

AAMI stands for:

• All Answers Mean Intelligence

• All Actors Make Income

• American Academy McAllister Institute

• Albert Ate Mangos Inside