Trade payable

Trade payable refer to the amounts owed to ________when business buy goods and non-current assets on credit

• Suppliers

• Customers

• Owner

Which of the following option is NOT the non-accounting information to consider when deciding which suppliers to buy from

• local or overseas suppliers

• after-sales services

• installation costs

• return policy

Which of the following is NOT the accounting information to consider when deciding which suppliers to buy from

• online vs brick-and-mortar suppliers

• cost of inventory

• trade discount

• cost of services

Discount received can be found in the statement of financial ________

• performance (other expense)

• performance (other income)

• position (current assets)

• position (current liabilities)

Trade payable can be found in statement of financial _______

• performance (other income)

• performance (other expense)

• position (current assets)

• position (current liabilities)

Adam purchased goods worth $100 on credit from Fresh Farm .

Dr: ___________________________

Cr:___________________________

• Dr: Inventory

  Cr: Cash at bank

• Dr: Trade receivable - Fresh Farm

  Cr: Sales revenue

• Dr: Inventory

  Cr: Trade payable - Fresh Farm

Farm Fresh give a cash discount of $50 given to Adam for early payment of his outstanding

Dr: ____________________

Cr:____________________

• Dr: Discount allowed

  Cr: Trade payable

• Dr: Trade payable - Farm Fresh

  Cr: Discount received

Adam return goods worth $40 back to Fresh Farms.

Dr:______________________

Cr:______________________

• Dr: Trade payable - Fresh Farm

  Cr: Inventory

• Dr: Trade payable - Fresh Farms

  Cr: Cash at bank

Adam make payment to his supplier - Farm Fresh by cheque

Dr: ________________

Cr:_________________

• Dr: Cash on hand

  Cr: Trade payable - Farm Fresh

• Dr: Trade payable - Farm Fresh

  Cr: Cash at Bank

• Dr: Trade payable

  Cr: Cash on hand

Kim purchases inventory from Seasons Supplies on credit. The following transactions took place in Kim's business for the month of May 20x4

May 1 - Kim owed Seasons Supplies $1,600

May 6 - Kim wrote a cheque to settle the amount owed to Seasons Supplies on 1 May, less 5% cash discount

What is the the journal entries for the above transaction?

• May 6

  Dr: Trade payable - Seasons Supplies $1,520

  Cr: Cash at Bank $1,520

  &

  Dr: Trade payable - Season Supplies $80

  Cr: Discount received $80

• May 6

  Dr: Trade payable - Seasons Supplies $1,600

  Cr: Cash at Bank $1,600

  &

  Dr: Discount received $80

  Cr: Trade payable - Season Supplies