Question 1

Sold merchandise on account would be recorded with:

Accepted Answer

A) a debit to an asset account. 
B) a debit to a liability account. 
C) a debit to Capital. 
D) None of these is correct. 
A) a debit to an asset account. 
B) a debit to a liability account. 
C) a debit to Capital. 
D) None of these is correct.

Question 2

Explain why,when a customer returns merchandise after it was paid for,he/she may or may not receive credit equal to the invoice value of the merchandise returned.

Accepted Answer

If the payment was made before

Question 3

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.
-$$\begin{array} { | l | c | c | c | } 
\hline & \text { Column 1 } & \text { Column } 2 & \text { Column } 3 \
\hline \text { Store Rent Expense } & & & \
\hline
\end{array}$$

Accepted Answer

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

Question 4

Terms of 3/10,n/30 means that a customer is allowed a 3% discount if he or she pays within 10 days of the invoice date.

Accepted Answer

A) True 
 B)False

Question 5

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.
-$$\begin{array} { | l | c | c | c | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 \
\hline \text { Owner's Capital } & & & \
\hline
\end{array}$$

Accepted Answer

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

Question 6

Sales Returns and Allowances is a contra-sales account.

Accepted Answer

A) True 
 B)False

Question 7

Net sales equal:

Accepted Answer

A) gross sales. 
B) gross sales - sales returns and allowances. 
C) gross sales - sales returns and allowances - sales discounts. 
D) gross sales - gross profit. 
A) gross sales. 
B) gross sales - sales returns and allowances. 
C) gross sales - sales returns and allowances - sales discounts. 
D) gross sales - gross profit.

Question 8

Define and compare the accounts receivable subsidiary ledger with the controlling account,Accounts Receivable.

Accepted Answer

Accounts receivable subsidiary ledger is

Question 9

Maria's Blankets and Bedding had a sale of $450 to a charge customer,terms 1/15,n/30.Maria should record this transaction as follows:

Accepted Answer

A) debit Accounts Receivable $450;credit Sales $450. 
B) debit Cash $450;credit Sales $450. 
C) debit Accounts Receivable $346.50;debit Sales Discounts $4.50;credit Sales $450. 
D) debit Sales $450;credit Accounts Receivable $450. 
A) debit Accounts Receivable $450;credit Sales $450. 
B) debit Cash $450;credit Sales $450. 
C) debit Accounts Receivable $346.50;debit Sales Discounts $4.50;credit Sales $450. 
D) debit Sales $450;credit Accounts Receivable $450.

Question 10

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 16.
__________________________________________ __________ __________
__________________________________________ __________ __________
__________________________________________ __________ __________

Accepted Answer

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

Question 11

The liability account used to record sales tax owed is:

Accepted Answer

A) Sales Tax Expense. 
B) Prepaid Taxes. 
C) Sales Tax Payable. 
D) Sales. 
A) Sales Tax Expense. 
B) Prepaid Taxes. 
C) Sales Tax Payable. 
D) Sales.

Question 12

Sales Discounts and Sales Returns and Allowances are contra-asset accounts.

Accepted Answer

A) True 
 B)False

Question 13

Sales discounts are NOT taken on which of the following?

Accepted Answer

A) Sales Tax 
B) Freight 
C) Merchandise returned 
D) Sales Discounts are not taken on any of the above. 
A) Sales Tax 
B) Freight 
C) Merchandise returned 
D) Sales Discounts are not taken on any of the above.

Question 14

Merchandise sold on credit was returned for credit and recorded with a debit to Sales Returns and Allowances and a credit to Accounts Payable.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 assets to be overstated. 
D) the accounts payable to be understated. 
A) the net income for the period to be overstated. 
B) the net income for the period to be understated. 
C) the assets to be overstated. 
D) the accounts payable to be understated.

Question 15

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 July 28.
__________________________________________ __________ __________
__________________________________________ __________ __________
__________________________________________ __________ __________

Accepted Answer

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

Question 16

Sue's Jewelry sold 30 necklaces for $25 each to a credit customer.The invoice included a 6% sales tax and payment terms of 2/10,n/30.In addition,5 necklaces were returned prior to payment.The entry to record the return would include:

Accepted Answer

A) a debit to Sales Returns and Allowances for $132.50. 
B) a debit to Sales Returns and Allowances for $125.00. 
C) a credit to Sales Tax Payable for $7.50. 
D) a debit to Accounts Receivable for $132.50. 
A) a debit to Sales Returns and Allowances for $132.50. 
B) a debit to Sales Returns and Allowances for $125.00. 
C) a credit to Sales Tax Payable for $7.50. 
D) a debit to Accounts Receivable for $132.50.

Question 17

The time a customer is granted to pay the bill is the discount period.

Accepted Answer

A) True 
 B)False

Question 18

Sales Discounts is an asset account.

Accepted Answer

A) True 
 B)False

Question 19

The normal balance of the Sales Returns and Allowances account is:

Accepted Answer

A) a credit. 
B) a debit. 
C) zero. 
D) It does not have a normal balance. 
A) a credit. 
B) a debit. 
C) zero. 
D) It does not have a normal balance.

Question 20

Calculate gross sales:
net sales = $100,000
sales returns and allowances = $25,000
sales discounts = $30,000
accounts receivable = $12,000

Accepted Answer

The answer of Calculate gross sales:
net sales = $100,000
sales returns...

Exam 9: Sales and Cash Receipts

Sold merchandise on account would be recorded with:

Explain why,when a customer returns merchandise after it was paid for,he/she may or may not receive credit equal to the invoice value of the merchandise returned.

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 Store Rent Expense

Terms of 3/10,n/30 means that a customer is allowed a 3% discount if he or she pays within 10 days of the invoice date.

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 Owner's Capital

Sales Returns and Allowances is a contra-sales account.

Net sales equal:

Define and compare the accounts receivable subsidiary ledger with the controlling account,Accounts Receivable.

Maria's Blankets and Bedding had a sale of $450 to a charge customer,terms 1/15,n/30.Maria should record this transaction as follows:

The liability account used to record sales tax owed is:

Sales Discounts and Sales Returns and Allowances are contra-asset accounts.

Sales discounts are NOT taken on which of the following?

Merchandise sold on credit was returned for credit and recorded with a debit to Sales Returns and Allowances and a credit to Accounts Payable.This error will cause:

Sue's Jewelry sold 30 necklaces for $25 each to a credit customer.The invoice included a 6% sales tax and payment terms of 2/10,n/30.In addition,5 necklaces were returned prior to payment.The entry to record the return would include:

The time a customer is granted to pay the bill is the discount period.

Sales Discounts is an asset account.

The normal balance of the Sales Returns and Allowances account is:

Calculate gross sales: net sales = $100,000 sales returns and allowances = $25,000 sales discounts = $30,000 accounts receivable = $12,000

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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