1.Accounting (An information system that measures, processes, and communicates economic information)
2.Asset (An economic resources of a business)
equation (Assessment= Liabilities+Owners’Equity)
4.Allowance for uncollectible accounts (estimated had debts as represented on the Balance sheet)
5.Average-cost method (the inventory method that
6.Accelerated method (the practice of charging the highest depreciation in the first year, and decreasing depreciation each year thereafter)
7.Amortization (the allocation of An intangible asset’s cost to the periods benefited by the asset) 8.Authorized stock (the maximum amount of stock that a Corporation may issue)
9.Appropriated retained earnings (certain amount of retained earnings that are unavailable for dividends),
10.Bank reconciliation controls (An accounting for the difference between book Balance and bank Balance at a particular date)
11.Balance sheet (The statement that shows the
a certain date)
12.Certified Public accounting(CPA) (An expert accountant licensed by the state)
13.Corporation (A business owned by Stockholders
14.Cost of goods available for sale (beginning
15.Credito r (allowing customers to pay for merchandise over a period of time)
http://m.wendangku.net/doc/4762e667caaedd3383c4d3ef.htmlplex capital structure (the make up of a
have been issued)
http://m.wendangku.net/doc/4762e667caaedd3383c4d3ef.htmlmon stock (the stock that represents the basic Ownership for a Corporation)
18.Cost of goods sold (what a merchandising company paid for the goods that it sold during the period)
19.Divident (A kind of distribution of profits to
a Corporation’s Stockholders)
20.Depreciation (the allocation of the cost of a
periods benefited by the asset) 21.Depletion (the allocation of a natural resource’s cost to the periods over which the resource is extracted and sold)
22.Money measure (The standard that all business transactions be measured in terms of dollars) 23.Management accountin g (The branch of accounting concerned with providing external users with financial information needed to make decisions)
24.Merchandise inventory (goods held for sale in the regular coure of business)
25.Franchise(the exclusive right to sell a product within a certain territory)
26.Financial accounting (The branch of accounting concerned with providing external users, with financial information needed to make decisions) 27.Separate entity (The accounting concept that treats a business as distinct from its owners, creditors and customers)
28.Stock Divident (a proportional distribution of stock to Corporation’s Stockholders)
29.Public accounting (The branch of accounting that deals with auditing, taxes, and management advisory services)
30.Prior period adjustment (An entry made in the current period that relates to An earlier period) 31.Patent (the exclusive right to sell a particular product or use a specific process for 17 years)
32.Outstanding stock (stock that is presently
33.Operating expenses (all expenses except for cost of goods sold)
34.Outstanding check (a check that has been issued,
bank payment) 35.Obsolescence (one reason for an asset’s limited useful lift)
36.Ownership’s Equity (The Balance sheet section that represens the Owner’s economic interest in a company)
37.Long –term nonmonetary assets(long-term assets or fixed assets) (assets to be used in the business for more than one year)
38.Liability (A debt of a business)
40.LIFO (the inventory method that better matches current costs against current revenues)
41.income statement (the statement that shows a company’s profit or l oss over a certain period of Time)
42.internal accounting controls (the part of internal control contains control that refers to the accounting records)
43.installment accounts receivable (receivables
44.internal control (a system designed to safeguard assets ,promote operational efficiency ,encourage) 45.internal administrative controls (that part of
internal control that refers to the management of
46.issued Stock (stock that has been sold to
Stockholders, and may or may not have been bought
back by the Corporation)
47.Retained earnings (The profits that a
Corporation has earned since its inception, minus
any losses, dividends declared, or transfers to
48.Residual value (salvage or disposal value)(the
estimated calue of An Asset at the disposal date)
49.Natural resources (assets in the form of
be extracted and sold)
50.Notice (a statement indicating that a
51.Withdrawals (Assets taken form the business by
the Owner for personal use)
52.Uncollectible accounts expenses (estimated
53.Treasury stock (issued stock that has been
reacquired by the Corporation)
54.Notice of protest (A statement indicatding
that a discounted note has been dishonored
55.Capital Structure (A company’s equity and
56.Bond indenture (The contract between the
bondholder and the issuing corporation)
57.Secured bonds (Bonds that are backed by certain
58.Bond discount (The diffrernce between par and
a lower amount paid for bonds)
accounting)must follow GAAP in all respects.
2.The existence of Accounts Receivable on the
balance sheet indicates that the company has one or
3.Assets are classified and presented in increasing
order of liquidity.
4.Financial statements are the end products of the
5.The presentation of the owner’s equity section
is same for three types of business organization.
6.Withdrawals by the owner of a single
proprietorship reduce both the as sets and the
7.Failure to include a warehouse’s merchandise in
ending inventory results in an overstated net
8.The statement of owners’equity reports all
changes in the owners’equity on a specific date
9.Working capital equals quick assets less quick
10.A good system of internal control will guarantee
that the accounting records are accurated.
11.When a petty cash fund is established,Cash is
debited,and Petty Cash is credited.
12.Cash Short or Over is a contra account to Cash
in the balanced sheet.
13.After a bank reconciliation has been
completed,the company must make journal entries to
adjust for all outstanding checks.
14.A bank reconciliation for the month of September
will begin with “balance per book”and “balance
per b ank statement”at September 1.
15.The percentage of credit sales method violates
the matching principle
16.Under the accounts receivable aging method, the
balance in Allowance for Uncollectible Accounts is
ignored in making the adjusting entry.
17.Under the gross profit method, cost of goods sold
is estimated by multlying the net sales by gross
18.Under rising prices,the average cost method will
result in a lower net income than LIFO will.
19.Of the four inventory methods,LIFO will result
in the lowest income during periods of falling
20.A copyright is a name or symbol that may be used
only by its owner.
21.A betterment is an example of a revenue
22.Recording an extraordinary repair will leave the
carrying value of the asset unchanged.
23.Accelerated depreciation will result in less net
income than will straight-line depreciation in the
asset’s last year of depreciation.
24.Bond interest expense can be paid only when
declared by the board of directors.
25.The worth of a share of stock can be measured by
26.Preferred stock if considered the residual
equity of a corporation.
27.When treasury stock is issued at more than its
cost,Gain on Sale of Treasury Stock should be
recorded by the corporation.
28.Appropriated Retained Earnings represents cash
set aside for a special purpose.
29.Extraordinary items should appear on the
statement of retained earnings.
30.After a stock dividend is distributed,each
stockholder owns a greater percentage of the
http://m.wendangku.net/doc/4762e667caaedd3383c4d3ef.htmlmon stock equivalents are never included in
the eaming per share calculation.
1.What are the major functions of accounting?
The major functions of accounting are to accumulate
and report financial information that shows an
organization’s financial posi-tion and the
results of its operation and to provide management
with the data needed for decision making and for
efficient opera-tion of the business.
2.Distinguish the major differences between
financial in the financial accounting and
1.focuses on providing data for external
decisions ba the es-ternal users.
2.places more emphasis on the history.
3.is governed by the genrally accepted
In contrast to financial accounting, managerial
1.focuses on providing data for internal uses by
2.places emphasis on the history and the future.
3.is not governed by the generally accepted
3.what is the purpose of a balance sheet?
The purpose of a balance sheet is to portray the
finan-cial position of the organization at a
particular point of time.
Assets are the economic resources that are
controlled by an or-ganization as a result of past
transactions, have probable eco-nomic benefits,
and can usefully be expressed in monetary terms.
5.define “current assets”and “long-term
Current assets are cash and assets that will be
converted into cash or used up during the normal
operating cycle of the busi-ness or one year,
whichever is longer. Long-term assets used in
operating the business and may in-clude fixed
assets (or plant and equipment) and intangible
6.list at least six examples of current assets and
three examples of long-term assets.
securities 4.prepaid insurance 5.supplies on
hand 6.prepaid rent
Current liabilities are those obligations that
require to pay within the normal operating cycle or
one year,whichever is longer,by (1)the use of
existing current assrts or(2)the creation of the
other current liabilities.long-term libilities are
those amounts of debts not due for a relative long
time,typically more than one years.
8.Define “owners equity”
Owner’s equity is define as the difference between
the assets and the liabilities and is often referred
to as a residual claim-a clain to the asstes
remaining after the debt to creditors has been
9.State the effect on a corporation’s balance
sheet of:(a)the declaration of a dividend.(b)the
payment of a dividend.
(a)the declaration of a dividend reduces the
retained earnings portion of the owner’s equity
and creates a liability called dividends payable on
a corporation’s balance sheet.(b)the payment of a
dividend eliminates the liability and reduces
10.What is the purpose of an income statement?
Incame statement is prepared to present the
operating results of an organization for a
11，Name the major categories of the income
statement for a merchandising company.
The major categories of the income statement for a
merchandising company are revenue,cost of goods
sold and operating expenses.
12.Identify the following as selling or
administrative expense items.(a)sales
salaries.(b)office salaries.(c)depreciation for
delivery equipment.(d) depreciation f or office
Selling expenses:(a )sales salaries
(c)depreciation for delivery
Administrative expenses:(b)office salaries. (d)
depreciation for office equipment. (f)ut ilities
13.Explain the complementary relationship between
the balance sheet and the income statement.
Operating results summarized by the income
statement will be reflected in the owner’s equity
on the balance sheet at the end of that period.
http://m.wendangku.net/doc/4762e667caaedd3383c4d3ef.html the five major categories of ledger
Assets, liabilities, owner’s equity, revenues and
expenses are the major categories of ledger
15.Describe the rules of debit and credit applied
to each of the five cat—egories of accounts.
The rules of debit and credit applied to each of the
five catego - ries of accounts are.
(1)The terms debit and credit are used to describe
the left-hand side and right-hand side of any ”
(2)Increases in asset and expense accounts are
debit entries, while increases in
liability,owner’s equity and revenue ac-counts
are credit entries.
(3)Decreases are logically recorded on the side
(4)The normal balance of any account appears on the
side for recording increases.
16.Indicate the normal balance (whether debit or
credit) of each ac-count listed below.
(a)Cash in bank
(b)Allowance for Uncollectible Accounts
(g)Accrued Interest payable
(a)debit (b)credit (c) debit (d) credi (e) credi
(f) debit (g) credi (h) debit
17.What is a control account? What is a subsidiary
A control account is a general ledger account with
a balance that is always equal to the sum of the
balances in a related subsidiary
ledger .Asubsidiary ledger is a group of
subaccounts that pro-vides more detail information
than the general ledger control accout.
18.Describe the chart of accounts.
The chart of accounts is a listing of the titles and
numbers of all accounts; these accounts can be found
in the general ledger. The account titles should be
grouped by and in order of assets, liabolities,
owner’s equity, revenues and expenses.
1.What is the nature of a journal?
A journal is the relatively simple record
Trans-actions can be recorded chronologically.
http://m.wendangku.net/doc/4762e667caaedd3383c4d3ef.html the special journals usually provided by
most trading companies in addition to a general
Most trading companies use at least the following
special jour-nals:sales journal,cash receipts
journal.purchases journal(in-voice register)and
cash disbursements j ournal in addition to a general
3.What are the benefits of using special journals
as compared with using only a general journal? The
benefits of using special journals as compared with
using only a general journal are that their use
permits a division of la-bor and saving the time in
posting from the journals to the ledg-er.
6.Gordon suppliers uses the four special journals
illustrated in the text and a general .in which
journals would each of the followingkindsof
transactions be recorded?
(a)Owner’scash investment in the business. Cash
(b)Sale of merchandise for cash. Cash Receipts
(c)Sale of merchandise on account. Sales Journal
(d)Return of merchandise sold on account. General
(e)Withdrawal of cash by owner. Cash
(f)Withdrawal of merchandise by owner for
personal use . General Journal
(g)Collections from customers on account. Cash
(h)Purchase of merchandise for cash. Cash
(i)Purchase of merchandise on account. Invoice
(j)Return of merchandise purchased on account.
(k)Purchase of office supplies on account.
(l)Purchase of equipment for cash and a note
payable. Cash Disbursements Journal
1.What is meant bu “cash discounts”? Explain the
”Cash discount”is referred to as the reduction of the invoice price.The terms mean that the full sales price(less any returns)is due in 30 days from the date of sale;2% cash discount will be granted if the payment is made within 10 days; if the payment is made beyond 10 days but within 20 days,the buyer may deduct 1% from the invoice price.
2.Who (buyer or seller) would bear the freight cost and who would remit to the freight company under each of the fliiowing selling terms?
(a)F.O.B shipping point , freight collect.
(b)F.O.Bdestination ,freight prepaid
(c) )F.O.B shipping point, freight prepaid
(d) )F.O.B destination ,freight collect
(a) The buyer would bear the freight cost and the buyer would remit it to the freightcompany.
(b) The seller would bear the freight cost and the seller would remit it to the freight company.
(c) The buyer would bear the freight cost and the seller would remit it to the freight company.
(d)The seller would bear he freight cost and the buyer would remit to the freight company.
3. Describe the nature of the Sales Returns and Allowances account and the Purchases Returns and Allowances account.
The Sales Returns and Allowances account is a contra account to sales account.The Purchases Returns and Allowances account is a contra account to Purchases account.
4. State the purpose of and the key information appearing on each of the following forms:
(a) purchase requisition(b)purchase order(c)sales invoice(d)receiving report
(a) Purchase requisition is a request for a purchase.
(b)The purchase order indicates the quantity,description,and price of merchandise ordered.It may also indicate expected terms of payment and arrangements for teansportation,including payment of freight costs.
(c) Sales imvoice defimes the terms of the transaction.
(d)A receiving report is made out by the purchaser’s receiving department detailing the quantities received after counting a nd inspecting the items in the shipment.
(e) Credit memorandum is made out to diminish the Accounts Receivable outstanding
5.How would you prove that a special journal”balances”?
We can add up all the debit amounts and the credit amounts in a special journal,If the two amounts are equal, the special journal balances.
1、Why is the adjusting step of the accounting cycle necessary?
答：Many of business transactions affect the net income of more than one period, therefore ,in order to achieve proper matching of costs and expenses with the relative revenue earnde to determine a meaningful net income figure for each accounting period, it is often necessary to adjust some account balances at the end of each a accounting period 2、What four different types of adjust ments are frequently needed at the end of an accounting period?
答：The four types of adjustments are:
(1)Apportioning recorded costs to periods benefited
(2)Apportioning recorded revenue to period in which it is earned
(3)Accruing unrecorded expense
(4)Accruing unrecorded revenue
3.Give examples for each of the four types of adjustments?
(1)Apportioning recorded costs:5% of the cost($20000) of patent rights is taken as amortization for each year over its legal life
Dr.amortization Expense 1000
(2)Apportioning recorded revenue:Ser vice amounting to $500 were rendered during the current year for customers who had paid in advance
Dr.Precollected Revenue 500
Cr. Sales Revenue 500
(3)Accruing unrecorded expense :Accrue rent expense amounting to $100 incurred bur unpaid for this month
(4)Accruing unrecorded revenue :Accrue interest revenue amounting to $50 earned but uncollected for this month
Dr.Interest receivable 50
Cr.interest Revenue 50
4. Describe the adjusting procedure for merchandise inventory records under a periodic inventory system?
答：The adjusting procedure for merchandise inventory records under a periodic inventory system is (1) to transfer beginning inventory to Income
Summary account (2) to record ending inventory
5. How do the accrual basis and the cash basis of
答：Under accrual basis:revenue are recognized when
earned expenses are recognized when goods and
services are used Under cash basis:revenue is
recognized when cash is collected ;expenses is
recognized when cash is paid for the goods or
1.which groups of accounts are closed at the end
of the accounting year?
答:Temporary accounts such as revenues and expenses
accounts are closed at the end of the accounting
2.why and how is the Income Summary account used
in the closing procedure?
答:Income Summary account is used to close
temporary accounts finally to the retained earning
or capital accounts at the end of each accounting
period so that temporary accounts are ready for the
accumulation of financial information for the next
accounting period. The debit balances of temporary
accounts will be transferred to the Income Summary
account as debit and vice versa. The net credit
balance of Income Summary account will be closed to
the credit side of Retained Earnings account and the
net debit balance of Income Summary account will be
closed to the debit side of Retained Earnings
3.which of the following accounts should not appear
in the postclosing trial balance:
Expense d.Retained Earnings
g.Accrued Wages Payable h.Supplies Expense
bi.Supplies on hand
答(a)Sales (g)Depreciation (i)Supplies
1.What would be the features included in an
adequate system of internal control over cash?
An adequate system of internal control over cash
would include the following features:
(1)Cash is handled separately from the recording
of cash transactions
(2)The work and responsibilities of cash handing
and recording are divided in such a way that
errors are readily disclosed and the
possibility of irregularities is reduced
(3)All cash receipts are deposited intact in the
bank each day
(4)All major disbursemengts are made by check and
an imprest(fixed amount) fund is used for
petty cash dibursemengts.
2.Are ious an d uncollected customers’ check
included in cash? If not,how do we classify them?
No,they are not included in cash.IOUs and
uncollected customers’ checks are normally
classified as receivables.
3. What is meant by an“imprest petty cash fund”?
how is such a fund established and replenished?
An “imprest pettycash fund”is referred to as a
cash fund for small expenditures established on an
imprest basis.The fund is established by writing a
check against the general bank account.When the
fund must be replenished, a check is drawn to petty
cash in an amount that will bring the cash value of
the fund back to the original amount
4. Define internal http://m.wendangku.net/doc/4762e667caaedd3383c4d3ef.html several specific
features of a good system of internal control?
Internal control can be defined as the plan of
organization and all of the coordinate methods and
measures adopted within a business to safeguard its
assets,check accuracy and reliability of its
accounting data,promote operational efficiency and
encourage adherence to prescribed managerial
The specific features of a good system of internal
responsibility,(3)division of work,(4)rotation of
accountability from custodianship(8)adequ ate
records and equipment
1.What is the purpose of a bank reconciliation?
The purpose of a bank reconciliation is to reconcile
the bank statement balance and the book balance of
bank deposits to an adjusted banlance ,which will
appear on the banlance sheet.
2.Inpreparing a bank reconciliation,what
procedures should you follow to determine(a)
deposits not recorded in the bank statement and
Deposits not recorded in the bank statement are
determined by comparing the book record with the
bank statement. Outstanding checks are determined
by comparing the book record with the list of checks
accompanied the bank statement.
3.Indicate whether the following items in a bank
reconciliation should be(1) added to the bank
statement balance,(2)deducted from the bank
statement balance,(3)added to the ledger account
balance,(4)deducted from the ledger account
(a) Bank service charge.
(c) Deposit in transit.
(e) Bank error charging company’s account with
check of another company.
(f)Difference of $360 in amount of check written for
$378 but recorded in check register(支票登记簿) for
(1):(c)(e), (2):(d) (3):(f) (4):(a)(b)
4.Which of the items listed in Question 3 require
an adjusting entry on the company’s books?
5.Which amount would appear on the balance sheet?
(a) balance per bank statement,
(b)bala nce per company’s books,
(c) an adjusted balance after reconciliation.
Can adjusted balance after reconciliation.
6.The bank reconciliation made byWoodruff,Inc.on
August 31,20*0 showed a deposit in transit of
(a) Woodruff,I nc
Balance per bank statement $9014
Balance per books $8589
Add: Deposit not yet credit
Add:Error correction in check
By bank 330
#61 for delivery expense 60
Less:Items charged by bank not
yet entered on books:
NSF checks $150
Service charges 10 160
Adjusted balance $8489
Adjusted balance $8489
1) Dr. Cash in bank 60
Cr. Delivery Expense 60
2)Dr.Accounts Receivable 150
Cr. Cash in Bank 150
To reclassify NSF check $150 as an accounts
3) Dr. Miscellaneous Expense 10
Cr.Cash in Bank 10
To record bank service charge for the
1.What is a voucher?
A voucher is a written authorization form init iated
for every disbursement a firm makes.
2.what is awr the purpose of a voucher system?
The purpose of a voucher system is to control
3.What of the special journals learned earlier is
replaced by the voucher register or the check
The purchases journal is replaced by the voucher
register .The cash disbursements journal is
replaced by the check register..
4.When a voucher is approved for the purchase of
merchandise,what documents should support the
When a voucher is approved for the purchase of
merchandise,the original copies of the purchase
order,invoice and receiving repor should support
5.Describe the most formal method of processing
purchases returns and allowances under avoucher
The most formal method of processing purchase
returns and allovances under a voucher system is to
cancel the original voucher and issue a new one for
the lower amout.
1.How do the ‘direct write-off’
and ’allowance’methods of handling credit
losses differ with respect to the timing of expense
Under the direct write-off method, credit losses
are recognized as bad debts in the period when they
are discovered to be uncollectible. However, un der
the allowance method, credit losses should be
estimated by making an adjusting entry at the end
of each accounting period in which sales revenues
(5)When a firm provides for credit losses under the
allowance method, why is the allowance for
uncollectible accounts credited rather than
Because the credit losses are an estimated amount
which represents he potential losses rather than
the actual ones .
3. Describe the two most commonly used methods of
estimating the provision for uncollectible
accounts expense when the allowance method is
The two most commonly used methods are the
percentage-of-sales method and the
percentage-of-receivable method. The bad debts
expense recognized is based on the
percentage-of-sales method. Under the second
method. The bad debts expense recognized is based
on the certain percentage of accounts receivable at
the close of the period. The adjustment for
uncollectibles would be the amount needed to creat
this desired credit balance in the allowance
4. Under the allowance method, when a specific
account is determined as uncollectible, it would
be written off through the allowance account. Doe s
this entry have effect on net income or on total
This entry has no effect on net income or on total
assets because the bad debts expense was already
reflected, by means of the adjusting entry ,in the
period when the revenue was recorded, and the net
realizable amount of accounts receivable remains
unchanged when the Allowance for Uncollectible
Accounts Receivable related to the specific
customers are written off simultaneously.
5. What do the terms”trade receivables”and
“trade payables” usually refer to?
The terms ”trade receivables”and “trade
payables”usually refer to receivables and
payables arising in regular course of the
company’s transactions with customers and
suppliers. Payments of these accounts normally are
to be made within 30 to 60 day
1.What are the advantages of preparing a
1.to facilitate the preparation of the formal
financial state-ments.2.to minimize the
possibility of errors.
2.When would adjusting entries be entered only on
a worksheet and not in the ledger accounts ?why ?
adjusting entries usually are made on the worksheet
when inter-im(monthly or quarterly) financial
statements are to be pre-pared because it will
save posting time.
3.Identify each of the eight amount columns of the
worksheet and in-dicate in which columns the
adjusted balances of the following accounts would
appear :(a)prepaid insurance (b)allowance for
Uncollectible accounts (c)accumulated
depreciation(d)accrued wages payable (e)rent
revenue (h)unearned service revenue (i)capital
A worksheet usually has four sets of columns which
include the trial balance columns,adjustments
columns and balance sheet colurmns,Each set of
columns has a debit and credit column;(a)Prepaid
Insurance :debit column of the adjustments columns
and balance sheet columns ;(b)Allowance for
Uncollectible Accounts ;credit column
of the adjustments columns and balance sheet
columns;(c)Accumulated Depreciation:credit column
of the adjustments
columns and balance sheet columns;(d)Accrued Wages
Payable :credit column of the adjustments columns
and balance sheet columns;(e)Rent Receivable:debit
column of the adjustments columns and balance sheet
Expense:debie column of the adjustments col-umns
and income statement columns;(g)Sercive
Revenue:credit column of the adjustmens columns and
income statement columns;(h)Unearned Service
Revenue:credit column of the adjustments columns
and balance sheet columns.(i)Capital stock:credit
column of the trial balance column and balance sheet
columns;(j)Retained Earnings:credit column of the
trial balance col-umns and balance sheet columns.
1. sold merchandise to K Olson $5000 invoice
101cash on delivery
FOB destination freight collect received a check
from Olson for $
4800the net amount after deduction of the freight
charges $200 the
Which would be paid by Olson to carrier for us
Dr .Cash 4800, transportation Out 200 Cr.Sales
(in Cash Receipts Journal)
2. Sold merchandise to J. Allen $20000 invoice
102terms 1/10 n/30
FOB destination freight prepaid
Dr. Accounts Receivable-J.Allen 20000 Cr .Sales
(in Sales Journal )
3.paid freight bill on shipment to J,Allen $1000 check 101
Dr, Transportation Out 1000 Cr. Cash 1000
(in cash Disbursements Journal)
4, Upon notification from J, Allen issued a credit memo for $200 as
an adjustment of the prices originally charged for merchandise sold
on Jan 2(invoice 102) Dr, Sales Returns and Allowances 2000
Cr., Accounts Receivable – J. Allen
11. Received a check from J. Allen for $17820 the amount due on our
Invoice 102 (dated Jan 2) Dr. cash 17820 , Sale Discounts 180
Cr, Accounts Receivable –J, Allen 18000 (in cash Receipts Journal)
12, Purchased merchandise from Y Company $4000 its invoice J-061
terms 2/10 1/20 n/30 FOB shipping point freight collect
Dr. Purchases 40000 Cr, Accounts Payable-Y Company 40000
14,Paid freight bill on shipment from Y company $2000 check 108
Dr Transportation In 2000 Cr ,Cash 2000 (in cash disbursements journal)
16, Returned $4000 merchandise to Y Company for credit its credit memo
received. Dr. Accounts Payable –Y Company 4000 Cr, Purchases Returns and Allowances 4000 (in General Journal)
21. Mailed a check （#116）to Y Company for $35280,the amount due on its invoice #J-061（dated Jan.12）. Dr.Accounts Payable-Y Compay36000 Cr.Purchases Discounts720 Cash35280 22.Purchased merchandise from Able Inc.$15000,its invoice#1142,terms:cash on delivery,F.O.B.shipping point,freight prepaid.Mailed a check(#117)for$15500,the invoice amount plus the freight charges$500 which would be paid by Able Inc.for us.
28.Purchased supplies from Lim Supply Company $1000;terms:1/10，n/30.
Dr.Supplies on Hand1000
—Lim Supply Co.1000
(in Invoice Register) 30.Received the rent bill for the month $8000 payable to Z Realty Agency.
—Z Realty Agency 8000
(in General Journal