The Journal Entry to Record the Purchase of Merchandise on Account

question 11

Multiple Choice

The journal entry to record the purchase of merchandise on account for $2,750 with freight of $125 prepaid by their supplier and added to the invoice is:

• A) debit Purchases $2,750;credit Accounts Payable $2,750
• B) debit Accounts Payable $2,875,debit Freight in $125;credit Purchases $2,750
• C) debit Purchases $2,750,debit Freight In $125;credit Accounts Payable $2,875
• D) debit Accounts Receivable $2,875;credit Sales $2,875

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Definitions:

Terms

Conditions and stipulations specified within agreements or contracts that define the rights and obligations of parties involved.

E-Invoice

An electronic invoice for goods or services that is sent online rather than through traditional physical mail.

Fuji Canada

Likely a reference to a company or organization operating in Canada associated with the Fuji brand, which could range from photographic and imaging products to other consumer goods.

Leap Year

A year with 366 days, with an extra day added to February to keep the calendar year synchronized with the astronomical or season year; occurs every four years.