Chapter 08 – Accounting for Purchases and Accounts Payable
62. A creditor’s account in the accounts payable ledger has a balance of $10,560 as of April 1.
After a transaction of $12,800 is posted from the purchases journal and a transaction of
$9,200 is posted from the cash payments journal, the balance of the creditor‘s account on
April 30 is:
63. If a business pays $1,100 on account to a creditor, the effect of the payment is a decrease
to cash and a
64. Which of the following accounts has a normal debit balance?
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any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
66. For each of the transactions listed below, identify the journal that should be used to record
the transaction. Use CR for cash receipts journal, CP for cash payments journal, S for sales
journal, P for purchases journal, and G for general journal.
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© 2012 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in
any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
70. Explain each of the following credit terms.
A) n/30
B) n/10 EOM
C) 2/10, n/30
D) 1/10, n/20
E) 3/5, n/30
