2026 REVISION NOTES SOLUTION BANK
COLLECTION
◉ A form used to record details of a sale and a bill to the customer.
Answer: Invoice
◉ What account does a company debit when it buys goods that it
plans to sell to its customers. Answer: Merchandise purchases
◉ Journal Entry: Company bought goods to sell for cash. Answer:
Debit:
Merchandise purchases
Credit:
Cash
◉ a 2% discount if invoice is paid within 10 days, net due in 30 days.
Answer: 2/10, n/30
, ◉ What concept is key to small business operations. Answer: Cash
Flow
◉ Journal Entry: Simple sale of goods for cash. Answer: Debit:
Cash
Credit:
Sales
◉ Journal Entry: Sold good on account w/ terms 2/10, n/30.
Answer: Debit:
Accounts receivable
Credit:
Sales
◉ Journal Entry: Customer takes advantage of discount. Answer:
Debit: