Exam 9: Sales and Cash Receipts

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

Entries to customers' accounts for sales are posted in the:

Sales discounts are NOT taken on which of the following?

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. $ ________

Sales Tax Payable is a:

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. -

Use the following information to answer the question below: The Net Sales are ________.

Sales Discounts is a liability account.

Home Restoration reports net sales of $70,000. If sales returns and allowances are $13,000 and sales discounts are $2,500, what are gross sales?

The Bay Co. had the following transactions involving the sale of merchandise. You are to prepare the necessary general journal entries. All sales are subject to credit terms of 1/10, n/30. No sales taxes are applicable. July 16 Sold merchandise on account with an invoice price of $5,500 to Carter and Co. July 16 Sold merchandise on account with an invoice price of $6,000 to the Ping Co. July 20 Ping Co. returned merchandise with an invoice price of $1,000. July 25 Received full payment from Carter and Co. July 28 Received full payment from Ping Co. -Prepare the necessary general journal entry for July 16. Sold merchandise on account with an invoice price of $6,000 to the Ping Co. __________________________________________ __________ __________ __________________________________________ __________ __________ __________________________________________ __________ __________

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. -

Collected a payment from a credit customer. This will be recorded with:

The time frame when customers are allowed to pay their bills and still be eligible for a discount is the:

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

Determine the amount of net sales given: gross sales = $250,000 sales discounts = $40,000 sales returns and allowances = $35,000 $ ________

Payment for merchandise sold on credit for $250 subject to 1/10, n/30 was received within the discount period-$247.50 was received. This was recorded with a debit to Sales Discounts for $2.50, a debit to Cash for $247.50, and a credit to Accounts Receivable $250, but no mention was made of the subsidiary ledger account. This error will cause:

The liability account used to record sales tax owed is:

A wholesale customer returned merchandise having already paid for it within the cash discount period. The return will be recorded with:

The collection on account within the 1/10, n/30 discount period was recorded using a 10% discount rather than a 1% discount in both the controlling and subsidiary accounts. This error will cause:

The Bay Co. had the following transactions involving the sale of merchandise. You are to prepare the necessary general journal entries. All sales are subject to credit terms of 1/10, n/30. No sales taxes are applicable. July 16 Sold merchandise on account with an invoice price of $5,500 to Carter and Co. July 16 Sold merchandise on account with an invoice price of $6,000 to the Ping Co. July 20 Ping Co. returned merchandise with an invoice price of $1,000. July 25 Received full payment from Carter and Co. July 28 Received full payment from Ping Co. -Prepare the necessary general journal entry for July 25. __________________________________________ __________ __________ __________________________________________ __________ __________ __________________________________________ __________ __________