Question 1

Determine the amount to be paid within the discount period for a previous sale with an invoice price of $12,000, subject to credit terms of 2/10, n/30.
$ ________

Accepted Answer

$11,760.00

Question 2

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

Accepted Answer

A) True 
 B)False  False

Question 3

The total of all cash sales and credit sales equals:

Accepted Answer

A)  net sales. 
B)  gross sales. 
C)  accounts receivable. 
D)  accounts payable. 
A)  net sales. 
B)  gross sales. 
C)  accounts receivable. 
D)  accounts payable. B

Question 4

Accounts of a single type are kept in the:

Accepted Answer

A)  supplemental ledger. 
B)  primary ledger. 
C)  subsidiary ledger. 
D)  None of these answers is correct. 
A)  supplemental ledger. 
B)  primary ledger. 
C)  subsidiary ledger. 
D)  None of these answers is correct.

Question 5

Customer returned merchandise for credit. This will be recorded with:

Accepted Answer

A)  a debit to an asset account. 
B)  a debit to a revenue account. 
C)  a credit to an asset account. 
D)  a debit to a liability. 
A)  a debit to an asset account. 
B)  a debit to a revenue account. 
C)  a credit to an asset account. 
D)  a debit to a liability.

Question 6

Mike returned $300 of merchandise to Secret Trails. His original purchase was $600, with terms 1/10, n/30. If Mike pays the balance of his account after the discount period, how much should he pay? (Round your calculations to the nearest whole dollar.)

Accepted Answer

A)  $306 
B)  $294 
C)  $300 
D)  $600 
A)  $306 
B)  $294 
C)  $300 
D)  $600

Question 7

When you record the entry to the subsidiary ledger and place the checkmark in the PR column, it is necessary to post to the Accounts Receivable controlling account.

Accepted Answer

A) True 
 B)False

Question 8

The length of time the customer is allowed to repay the bill is the:

Accepted Answer

A)  discount period. 
B)  short period. 
C)  credit period. 
D)  return period. 
A)  discount period. 
B)  short period. 
C)  credit period. 
D)  return period.

Question 9

The document indicating to the customer that the seller is reducing the amount owed by the customer is a:

Accepted Answer

A)  credit memorandum. 
B)  sales discount. 
C)  customer allowance. 
D)  debit memorandum. 
A)  credit memorandum. 
B)  sales discount. 
C)  customer allowance. 
D)  debit memorandum.

Question 10

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 11

The balance in the Accounts Receivable account is $2,300 debit. Therefore, the balances in the subsidiary ledger should be $2,100.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A)  debit balance. 
B)  contra-revenue account. 
C)  records the cash discounts granted to customers. 
D)  All of these answers are correct. 
A)  debit balance. 
B)  contra-revenue account. 
C)  records the cash discounts granted to customers. 
D)  All of these answers are correct.

Question 13

The general ledger and the accounts receivable subsidiary ledger are the same book.

Accepted Answer

A) True 
 B)False

Question 14

The normal balance of the accounts receivable subsidiary ledger is:

Accepted Answer

A)  credit. 
B)  debit. 
C)  It does not have a normal balance. 
D)  Not enough information provided. 
A)  credit. 
B)  debit. 
C)  It does not have a normal balance. 
D)  Not enough information provided.

Question 15

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

Accepted Answer

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

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.
-

Accepted Answer

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

Question 17

Recording to the accounts receivable subsidiary ledger is done:

Accepted Answer

A)  daily. 
B)  monthly. 
C)  weekly. 
D)  annually. 
A)  daily. 
B)  monthly. 
C)  weekly. 
D)  annually.

Question 18

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.
-

Accepted Answer

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

Question 19

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 20

If cash flow is so important to merchandisers, why do they extend credit to their customers?

Accepted Answer

A customer who is limited to m

Exam 9: Sales and Cash Receipts

Determine the amount to be paid within the discount period for a previous sale with an invoice price of $12,000, subject to credit terms of 2/10, n/30. $ ________

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

The total of all cash sales and credit sales equals:

Accounts of a single type are kept in the:

Customer returned merchandise for credit. This will be recorded with:

Mike returned $300 of merchandise to Secret Trails. His original purchase was $600, with terms 1/10, n/30. If Mike pays the balance of his account after the discount period, how much should he pay? (Round your calculations to the nearest whole dollar.)

When you record the entry to the subsidiary ledger and place the checkmark in the PR column, it is necessary to post to the Accounts Receivable controlling account.

The length of time the customer is allowed to repay the bill is the:

The document indicating to the customer that the seller is reducing the amount owed by the customer is a:

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.

The balance in the Accounts Receivable account is $2,300 debit. Therefore, the balances in the subsidiary ledger should be $2,100.

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

The general ledger and the accounts receivable subsidiary ledger are the same book.

The normal balance of the accounts receivable subsidiary ledger is:

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

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. -

Recording to the accounts receivable subsidiary ledger is done:

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. -

Reduction given to company customers for early payment is a:

If cash flow is so important to merchandisers, why do they extend credit to their customers?

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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