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Purchasing Items Needed by a Business
Analyzing & Recording Purchases on Account
Purchase Discounts
The Purchasing Process
100
This account is considered to be a a cost of merchandise account.
What is the purchases account?
100
Individual accounts for each supplier or creditor.
What is the accounts payable subsidiary ledger?
100
A "purchase discount" is this.
What is a discount for early payment?
100
This is a written request to order a specified item or items.
What is a purchase requisition?
200
The normal value of the purchases account
What is a debit?
200
A tickler file has this
What is a folder for each day of the month?
200
The discount period for a credit term of 2/15, n/60.
What is fifteen days?
200
A document that serves as a written authorization for a cash payment.
What is an invoice?
300
Sales of supplies go to the purchases account, correct statement?
What is a false statement?
300
When a business returns merchandise to a supplier, it sends this document.
What is a debit memorandum?
300
The "n" in a credit term means this:
What is the date the merchandise must be paid by?
300
Much of the information on the purchase order comes from here.
Where is the purchase requisition?
400
This account contains the actual cost to the business of the items sold to customers.
What is a cost of merchandise account?
400
When there is less than satisfactory merchandise, a supplier will issue this.
What is a purchases allowance.
400
Merchandiser's sales.
What is merchandise?
400
The time within an invoice must be paid to merit a discount.
What is the discount period ?
500
This is bought then sold for profit.
What is merchandise
500
This is credited if an item is returned
What is the accounts payable?
500
If the credit terms for merchandise worth is $200 purchased on March 12 is 15/20, n/45, the discount is this amount if paid by this date.
What is $30 by April 1?
500
These are the four steps of the purchasing process.
What are requesting needed items, ordering from a supplier, veryifing ordered items, and processing the supplier's invoice?