10.2 Learning Objective 10-2
1) On February 12, Clare purchased $400 of merchandise on account from Larsen’s Accessories, terms 2/10, n/30. The goods were shipped F.O.B. destination. The freight charge was $40. The amount to be recorded in the Accounts Payable Subsidiary ledger is:
2) An entry to record the payment to a vendor was correctly recorded and posted to the general ledger but was not posted to the subsidiary ledger. This error will cause:
A) net income to be overstated.
B) the vendor account total in the subsidiary to be less than control total.
C) the accounts payable control account to not agree with the subsidiary ledger.
D) the accounts receivable control account to not agree with the subsidiary ledger.
3) To prove the subsidiary ledger agrees with the Accounts Payable controlling account balance, complete a:
A) debit memorandum.
B) schedule of accounts payable.
C) purchase order.
D) schedule of accounts receivable.
4) Which account is the controlling account for the amounts owed to individual creditors?
A) Accounts Payable in the general ledger
B) Accounts Receivable in the general ledger
C) Accounts Receivable in the subsidiary ledger
D) Accounts Payable in the subsidiary ledger
5) The controlling account is found in the subsidiary ledger for all accounts payable.
6) The Accounts Receivable and Accounts Payable are both controlling accounts.
7) The accounts payable subsidiary ledger should equal the control account in the general ledger.