Question: The Cash Disbursements Journal is also known as the Cash Payments Journal. True False The Vendors' subsidiary ledgers support the Accounts...

Question:The Cash Disbursements Journal is also known as the Cash Payments Journal.

True

False

The Vendors' subsidiary ledgers support the Accounts Receivable general ledger account.

True

False

The purpose of the Cash Disbursements Journal is to record all the cash receipts for the period.

True

False

The entry to record the cash payment for the purchase of office furniture will include a credit to the Cash account.

True

False

When merchandise inventory was purchased for cash, the Inventory account will be debited under the perpetual inventory system.

True

False

When a company pays within the discount period, under perpetual inventory system, the discount amount is credited to the Inventory account.

True

False

The purchase of Office Supplies for 1,000.00 for cash will involve a debit to Cash for $1,000.00.

True

False

The subsidiary accounts for the Accounts Payable general ledger accounts are the customers' accounts.

True

False

To pay the employees salaries for 2,800.00, the entry will include a debit to Cash for $2,800.00.

True

False

The voucher system is a set of accounting procedures designed to provide the control of cash receipts.

True

False

Table 1: On February 1, Company E purchased $9,500.00 worth of inventory on terms: 2/10, n/30, FOB Shipping Point on account from Company F. The Freight Charges are $200.00. On February 2, Company E returned $500 worth of merchandise purchased to Company F. The company uses perpetual inventory system.Refer to Table 1, the entry on Feb. 10 to pay the purchase made by Company E will include:

Debit to Cash for $9,700.00

Credit to Accounts Payable for $9,500.00

Credit to Accounts Payable for $9,200.00

Debit to Accounts Payable for $9,200.00

Debit to Cash for $9,200.00

Table 1: On February 1, Company E purchased $9,500.00 worth of inventory on terms: 2/10, n/30, FOB Shipping Point on account from Company F. The Freight Charges are $200.00. On February 2, Company E returned $500 worth of merchandise purchased to Company F. The company uses perpetual inventory system.Refer to Table 1, except that Company E uses the periodic inventory system. The entry to pay the purchases on Feb. 10 will include:

Credit to Cash for $9,700.00

Debit to Accounts Payable for $9,200.00

Credit to Purchases for $9,500.00

Debit to Cash for $9,500.00

Credit to Inventory for $9,700.00