Questions from College Accounting

Q: Paul Kloss, accountant for Lowe & Co., traveled to New

Paul Kloss, accountant for Lowe & Co., traveled to New York on company business. His total expenses came to $350. Paul felt that because the trip extended over the weekend he would “pad” his expense a...

Q: What category is Sales Discount in?

What category is Sales Discount in?

Q: Compare and contrast the Controlling Account—Accounts Receivable to the accounts

Compare and contrast the Controlling Account—Accounts Receivable to the accounts receivable subsidiary ledger.

Q: Why is the accounts receivable subsidiary ledger organized in alphabetical order?

Why is the accounts receivable subsidiary ledger organized in alphabetical order?

Q: When is a (✓) used?

When is a (✓) used?

Q: Explain how net purchases is calculated.

Explain how net purchases is calculated.

Q: Explain the difference between merchandise and equipment.

Explain the difference between merchandise and equipment.

Q: Why would the purchaser issue a debit memorandum?

Why would the purchaser issue a debit memorandum?

Q: Explain why a trade discount is not a cash discount.

Explain why a trade discount is not a cash discount.

Q: What new account is used in a perpetual system compared to the

What new account is used in a perpetual system compared to the periodic system?