Question 1

Monica's Closet received payment in full within the discount period for goods sold on a $600 sales invoice,terms 2/10,n/30.Which entry records this payment?

Accepted Answer

A) Debit Accounts Receivable $600;credit Sales $600 
B) Debit Cash $600;credit Accounts Receivable $600 
C) Debit Cash $588,debit Sales Discount $12;credit Sales $600 
D) Debit Cash $588,debit Sales Discount $12;credit Accounts Receivable $600 
A) Debit Accounts Receivable $600;credit Sales $600 
B) Debit Cash $600;credit Accounts Receivable $600 
C) Debit Cash $588,debit Sales Discount $12;credit Sales $600 
D) Debit Cash $588,debit Sales Discount $12;credit Accounts Receivable $600

Question 2

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.
-$$\begin{array} { | l | c | c | c | } 
\hline & \text { Column 1 } & \text { Column } 2 & \text { Column } 3 \
\hline \text { Professional Fees Earned } & & & \
\hline
\end{array}$$

Accepted Answer

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

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.
-$$\begin{array} { | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 \
\hline \text { Sales Discounts } & & & \
\hline
\end{array}$$

Accepted Answer

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

Question 4

Sold merchandise subject to a sales tax,accepting cash.This will be recorded with:

Accepted Answer

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

Question 5

A contra-revenue account with a debit balance for returned goods is called:

Accepted Answer

A) Sales Returns and Allowances. 
B) Sales Discount. 
C) the credit period. 
D) the discount period. 
A) Sales Returns and Allowances. 
B) Sales Discount. 
C) the credit period. 
D) the discount period.

Question 6

The total of all cash sales and credit sales equals:

Accepted Answer

A) net sales. 
B) gross sales. 
C) accounts receivable. 
D) sales returns and allowances. 
A) net sales. 
B) gross sales. 
C) accounts receivable. 
D) sales returns and allowances.

Question 7

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 20.
__________________________________________ __________ __________
__________________________________________ __________ __________
__________________________________________ __________ __________

Accepted Answer

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

Question 8

Which of the following statements about subsidiary ledgers is most accurate?

Accepted Answer

A) The subsidiary ledger accounts will never equal the control account in the general ledger. 
B) The accounts receivable subsidiary ledger is a book of accounts that provides supporting detail for Accounts Receivable. 
C) The subsidiary ledger accounts will equal the amount of cash sales. 
D) All of these answers are correct. 
A) The subsidiary ledger accounts will never equal the control account in the general ledger. 
B) The accounts receivable subsidiary ledger is a book of accounts that provides supporting detail for Accounts Receivable. 
C) The subsidiary ledger accounts will equal the amount of cash sales. 
D) All of these answers are correct.

Question 9

Every controlling account must have its own:

Accepted Answer

A) junior ledger. 
B) general ledger. 
C) subsidiary ledger. 
D) general journal. 
A) junior ledger. 
B) general ledger. 
C) subsidiary ledger. 
D) general journal.

Question 10

The balance in the Accounts Receivable account is $2,200 debit.Therefore,the balances in the subsidiary ledger should be $2,000.

Accepted Answer

A) True 
 B)False

Question 11

The controlling account is found in the subsidiary ledger and it summarizes or controls the general ledger account.

Accepted Answer

A) True 
 B)False

Question 12

Individual credit customer accounts are kept in the general ledger.

Accepted Answer

A) True 
 B)False

Question 13

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 2.
__________________________________________ __________ __________
__________________________________________ __________ __________
__________________________________________ __________ __________

Accepted Answer

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

Question 14

The normal balance of Sales Tax Payable is a credit.

Accepted Answer

A) True 
 B)False

Question 15

Reduction given to company customers for early payment is a:

Accepted Answer

A) sales returns and allowance. 
B) purchase discount. 
C) sales discount. 
D) customer discount. 
A) sales returns and allowance. 
B) purchase discount. 
C) sales discount. 
D) customer discount.

Question 16

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 16.Sold merchandise on account with an invoice price of $5,000 to the Taylor Co.
__________________________________________ __________ __________
__________________________________________ __________ __________
__________________________________________ __________ __________

Accepted Answer

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

Question 17

When a customer returns defective office supplies the Sales Returns and Allowances account will be debited.

Accepted Answer

A) True 
 B)False

Question 18

Sue's Jewelry sold 20 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 original sale would include:

Accepted Answer

A) a debit to Accounts Receivable for $530. 
B) a debit to Accounts Receivable for $500. 
C) a debit to Sales for $530. 
D) a debit to Sales for $500. 
A) a debit to Accounts Receivable for $530. 
B) a debit to Accounts Receivable for $500. 
C) a debit to Sales for $530. 
D) a debit to Sales for $500.

Question 19

John sold goods for $100 to a charge customer.The customer returned for credit $25 worth of goods.Terms of the sale were 1/10,n/30.If the customer pays the amount owed within the discount period,what is the amount the customer should pay?

Accepted Answer

A) $74.25 
B) $75.00 
C) $100.00 
D) $90.00 
A) $74.25 
B) $75.00 
C) $100.00 
D) $90.00

Question 20

A characteristic of Sales Returns and Allowances is that:

Accepted Answer

A) it has a debit balance. 
B) it tracks returns from customers. 
C) it is a contra-revenue account. 
D) All of these answers are correct. 
A) it has a debit balance. 
B) it tracks returns from customers. 
C) it is a contra-revenue account. 
D) All of these answers are correct.

Exam 9: Sales and Cash Receipts

Monica's Closet received payment in full within the discount period for goods sold on a $600 sales invoice,terms 2/10,n/30.Which entry records this payment?

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 Professional Fees Earned

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 Discounts

Sold merchandise subject to a sales tax,accepting cash.This will be recorded with:

A contra-revenue account with a debit balance for returned goods is called:

The total of all cash sales and credit sales equals:

Which of the following statements about subsidiary ledgers is most accurate?

Every controlling account must have its own:

The balance in the Accounts Receivable account is $2,200 debit.Therefore,the balances in the subsidiary ledger should be $2,000.

The controlling account is found in the subsidiary ledger and it summarizes or controls the general ledger account.

Individual credit customer accounts are kept in the general ledger.

The normal balance of Sales Tax Payable is a credit.

Reduction given to company customers for early payment is a:

When a customer returns defective office supplies the Sales Returns and Allowances account will be debited.

Sue's Jewelry sold 20 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 original sale would include:

John sold goods for $100 to a charge customer.The customer returned for credit $25 worth of goods.Terms of the sale were 1/10,n/30.If the customer pays the amount owed within the discount period,what is the amount the customer should pay?

A characteristic of Sales Returns and Allowances is that:

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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