Chapter Review
5-6dDiscussion Questions
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Why would a company maintain separate accounts receivable ledgers for each customer, as opposed to maintaining a single accounts receivable ledger for all customers?
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What are the major advantages of the use of special journals?
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In recording 400 fees earned on account during a single month, how many times will it be necessary to write Fees Earned (a) if each transaction, including fees earned, is recorded individually in a two-column general journal; (b) if each transaction for fees earned is recorded in a revenue journal?
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How many postings to Fees Earned for the month would be needed in Discussion Question 3 if the procedure described in (a) had been used; if the procedure described in (b) had been used?
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During the current month, the following errors occurred in recording transactions in the purchases journal or in posting from it:
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An invoice for $1,875 of supplies from Kelly Co. was recorded as having been received from Kelley Co., another supplier.
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A credit of $420 to Blackstone Company was posted as $240 in the subsidiary ledger.
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An invoice for equipment of $4,800 was recorded as $4,000.
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The Accounts Payable column of the purchases journal was overstated by $3,600.
How will each error come to the bookkeeper’s attention, other than by chance discovery?
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Assuming the use of a two-column general journal, a purchases journal, and a cash payments journal as illustrated in this chapter, indicate the journal in which each of the following transactions should be recorded:
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Purchase of office supplies on account.
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Purchase of supplies for cash.
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Purchase of store equipment on account.
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Payment of cash for office supplies.
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What is an electronic form, and how is it used in a computerized accounting system?
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When are transactions posted in a computerized accounting system?
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What happens to the special journal in a computerized accounting system that uses electronic forms?
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How would e-commerce improve the revenue/collection cycle?