Question 1

The principal ledger containing all the balance sheet and income statement accounts is the:

Accepted Answer

A) general ledger. 
B) creditors' ledger. 
C) customers' ledger. 
D) subsidiary ledger. 
A) general ledger. 
B) creditors' ledger. 
C) customers' ledger. 
D) subsidiary ledger.

Question 2

Plymouth Sharks Hockey Accessories had the following transactions involving the sale of merchandise.You are to prepare the necessary general journal entries.All sales are subject to a 6% sales tax and have a 2/10,n/30 discount terms.
 December 2 $\quad$Sold merchandise priced at $\$ 100$ to Cathy Norton on account.
December 4 $\quad$Sold merchandise priced at $\$ 125$ to a cash customer.
Decem ber 10 $\quad$Payment from Cathy Norton received.
Decem ber 16 $\quad$Cash customer returned $\$ 40$ worth of merchandise.
-Prepare the necessary general journal entry for December 4.
__________________________________________ __________ __________
__________________________________________ __________ __________
__________________________________________ __________ __________

Accepted Answer

The answer of Plymouth Sharks Hockey Accessories had the following...

Question 3

A characteristic of the account,Sales Discount,includes the following except for:

Accepted Answer

A) debit balance. 
B) contra-revenue account. 
C) records the cash discounts granted to customers. 
D) contra-asset. 
A) debit balance. 
B) contra-revenue account. 
C) records the cash discounts granted to customers. 
D) contra-asset.

Question 4

Determine the amount of net sales given:
gross sales = $200,000
sales discounts = $25,000
sales returns and allowances = $35,000
$ ________

Accepted Answer

The answer of Determine the amount of net sales given:
gross...

Question 5

If a credit memorandum is issued,what account will be decreased on the seller's books?

Accepted Answer

A) Accounts Receivable 
B) Accounts Payable 
C) Sales 
D) Sales Returns and Allowances 
A) Accounts Receivable 
B) Accounts Payable 
C) Sales 
D) Sales Returns and Allowances

Question 6

Santa Materials sold goods for $2,000 plus 2% sales tax to a charge customer,terms n/30.Which entry is required to record this transaction?

Accepted Answer

A) Debit Accounts Receivable $2,040;credit Sales Tax Payable $140;credit Sales $2,000 
B) Debit Cash $2,000;credit Sales $2,000 
C) Debit Accounts Receivable $2,000;credit Sales $2,000 
D) Debit Accounts Receivable $2,040;credit Sales $2,040 
A) Debit Accounts Receivable $2,040;credit Sales Tax Payable $140;credit Sales $2,000 
B) Debit Cash $2,000;credit Sales $2,000 
C) Debit Accounts Receivable $2,000;credit Sales $2,000 
D) Debit Accounts Receivable $2,040;credit Sales $2,040

Question 7

The return of merchandise by a credit customer was recorded with a debit to Accounts Payable and a credit to Accounts Receivable and the subsidiary ledger.This error will cause:

Accepted Answer

A) the net income for the period to be overstated. 
B) the net income for the period to be understated. 
C) the control account to not agree with the subsidiary ledger. 
D) the assets to be overstated. 
A) the net income for the period to be overstated. 
B) the net income for the period to be understated. 
C) the control account to not agree with the subsidiary ledger. 
D) the assets to be overstated.

Question 8

For each of the following, identify in column 1 the category to which the account belongs, in column 2 the normal balance for the account, and in column 3 the financial statement on which the account balance is reported.
-$$\begin{array} { | l | c | c | c | } 
\hline & \text { Column 1 } & \text { Column } 2 & \text { Column } 3 \
\hline \text { Sales Returns and } & & & \
\text { Allowances } & & & \
\hline
\end{array}$$

Accepted Answer

The answer of For each of the following, identify in...

Question 9

The accounts receivable subsidiary ledger shows the amount collected from each customer.

Accepted Answer

A) True 
 B)False

Question 10

The Sales Returns and Allowances account is contra-revenue.

Accepted Answer

A) True 
 B)False

Question 11

Payment for merchandise sold on credit for $100 subject to 1/10 n/30 was received within the discount period-$99 was received.This was recorded with a debit to Sales Discounts for $1,a debit to Cash for $99,and a credit to Accounts Receivable $100,but no mention was made of the subsidiary ledger account.This error will cause:

Accepted Answer

A) the net income for the period to be overstated. 
B) the net income for the period to be understated. 
C) the control account to not agree with the subsidiary ledger. 
D) the assets to be overstated. 
A) the net income for the period to be overstated. 
B) the net income for the period to be understated. 
C) the control account to not agree with the subsidiary ledger. 
D) the assets to be overstated.

Question 12

Determine the amount of cash collected on a credit sale with a price of $80,000 and credit terms of 1/10,n/30,assuming the payment was after the discount period had expired.
$ ________

Accepted Answer

The answer of Determine the amount of cash collected on...

Question 13

Determine the amount of cash collected at the time of making a sale of $7,500 worth of merchandise subject to a 6% sales tax.
$ ________

Accepted Answer

The answer of Determine the amount of cash collected at...

Question 14

Plymouth Sharks Hockey Accessories had the following transactions involving the sale of merchandise.You are to prepare the necessary general journal entries.All sales are subject to a 6% sales tax and have a 2/10,n/30 discount terms.
 December 2 $\quad$Sold merchandise priced at $\$ 100$ to Cathy Norton on account.
December 4 $\quad$Sold merchandise priced at $\$ 125$ to a cash customer.
Decem ber 10 $\quad$Payment from Cathy Norton received.
Decem ber 16 $\quad$Cash customer returned $\$ 40$ worth of merchandise.
-Prepare the necessary general journal entry for April 13.
__________________________________________ __________ __________
__________________________________________ __________ __________
__________________________________________ __________ __________

Accepted Answer

The answer of Plymouth Sharks Hockey Accessories had the following...

Question 15

Use the following information to answer the questions below:
 $$\begin{array} { l r } 
\text { Sales } & \$ 75,400 \
\text { Sales Discount } & 1,500 \
\text { Sales Returns and Allowances } & 500 \
\text { Transportation Expense } & 700
\end{array}$$ 
The Net Sales are ________.

Accepted Answer

The answer of Use the following information to answer the...

Question 16

For each of the following, identify in column 1 the category to which the account belongs, in column 2 the normal balance for the account, and in column 3 the financial statement on which the account balance is reported.
-$$\begin{array} { | l | c | c | c | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 \
\hline \text { Sales Tax Payable } & & & \
\hline
\end{array}$$

Accepted Answer

The answer of For each of the following, identify in...

Question 17

If a customer returns merchandise,the income for that period will be increased.

Accepted Answer

A) True 
 B)False

Question 18

Plymouth Sharks Hockey Accessories had the following transactions involving the sale of merchandise.You are to prepare the necessary general journal entries.All sales are subject to a 6% sales tax and have a 2/10,n/30 discount terms.
 December 2 $\quad$Sold merchandise priced at $\$ 100$ to Cathy Norton on account.
December 4 $\quad$Sold merchandise priced at $\$ 125$ to a cash customer.
Decem ber 10 $\quad$Payment from Cathy Norton received.
Decem ber 16 $\quad$Cash customer returned $\$ 40$ worth of merchandise.
-Prepare the necessary general journal entry for April 16.
__________________________________________ __________ __________
__________________________________________ __________ __________
__________________________________________ __________ __________

Accepted Answer

The answer of Plymouth Sharks Hockey Accessories had the following...

Question 19

Sales is a revenue account.

Accepted Answer

A) True 
 B)False

Question 20

Sales tax collected by the seller is not included in the seller's total revenue.

Accepted Answer

A) True 
 B)False

Exam 9: Sales and Cash Receipts

The principal ledger containing all the balance sheet and income statement accounts is the:

A characteristic of the account,Sales Discount,includes the following except for:

Determine the amount of net sales given: gross sales = $200,000 sales discounts = $25,000 sales returns and allowances = $35,000 $ ________

If a credit memorandum is issued,what account will be decreased on the seller's books?

Santa Materials sold goods for $2,000 plus 2% sales tax to a charge customer,terms n/30.Which entry is required to record this transaction?

The return of merchandise by a credit customer was recorded with a debit to Accounts Payable and a credit to Accounts Receivable and the subsidiary ledger.This error will cause:

For each of the following, identify in column 1 the category to which the account belongs, in column 2 the normal balance for the account, and in column 3 the financial statement on which the account balance is reported. - Column 1 Column 2 Column 3 Sales Returns and Allowances

The accounts receivable subsidiary ledger shows the amount collected from each customer.

The Sales Returns and Allowances account is contra-revenue.

Determine the amount of cash collected on a credit sale with a price of $80,000 and credit terms of 1/10,n/30,assuming the payment was after the discount period had expired. $ ________

Determine the amount of cash collected at the time of making a sale of $7,500 worth of merchandise subject to a 6% sales tax. $ ________

Use the following information to answer the questions below: Sales \ 75,400 Sales Discount 1,500 Sales Returns and Allowances 500 Transportation Expense 700 The Net Sales are ________.

For each of the following, identify in column 1 the category to which the account belongs, in column 2 the normal balance for the account, and in column 3 the financial statement on which the account balance is reported. - Column 1 Column 2 Column 3 Sales Tax Payable

If a customer returns merchandise,the income for that period will be increased.

Sales is a revenue account.

Sales tax collected by the seller is not included in the seller's total revenue.

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes:

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property,plant,equipment,and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values,dividends,treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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