Introduction to Accounting I?

M

mindcrime828

New member
Answer #1 is A

Answer #2 is D. Accounts Payable would be debited for the full $900. The credits would be to Cash $891 and Discounts Earned $9.
 
CarloHa

CarloHa

New member
1) On March 30, Bailey’s Dog Bakery purchased $1,000 of merchandise on account from the Williams Company. The goods were shipped F.O.B. shipping point. The freight charge of $80 was paid by Williams Company and added to the invoice. The amount to record in the Accounts Payable account is:
A) $l,080.
B) $l,070.
C) $1,000.
D) $990.

2) The entry to record a payment on a $900 account within the 1% discount period would include a:
A) credit to Purchases for $909.
B) debit to Cash for $891.
C) debit to Accounts Payable for $891.
D) debit to Accounts Payable for $900.
 
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