Exam 9: Sales and Cash Receipts

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. -

(Essay)

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Question 101

The Milk Co. 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. Terms of sale were n/30. April 13 Sold merchandise priced at $600 to James Ellsworth on account. April 14 Sold merchandise priced at $325 to a cash customer. April 15 Sold merchandise priced at $175 to Dana Carter on account. April 16 Sold merchandise priced at $700 to a cash customer. April 20 The customer of April 14 returned $50 worth of merchandise for a cash refund. April 25 Received full payment from Dana Carter. April 30 Paid the amount of sales tax to the state. -Prepare the necessary general journal entry for April 15. __________

(Essay)

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Question 102

The Milk Co. 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. Terms of sale were n/30. April 13 Sold merchandise priced at $600 to James Ellsworth on account. April 14 Sold merchandise priced at $325 to a cash customer. April 15 Sold merchandise priced at $175 to Dana Carter on account. April 16 Sold merchandise priced at $700 to a cash customer. April 20 The customer of April 14 returned $50 worth of merchandise for a cash refund. April 25 Received full payment from Dana Carter. April 30 Paid the amount of sales tax to the state. -Prepare the necessary general journal entry for April 30. __________

(Essay)

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Question 103

Betsy's pottery sold 300 tiles at $40 each to a charge customer, terms 1/10, n/30. Which entry is required to record this transaction? (Round intermediary calculations to the nearest cent and final answers to the whole dollar.)

(Multiple Choice)

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Question 104

Explain how the record keeping differs between a cash sale and a credit sale.

(Essay)

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Question 105

A record showing the activity and the balances owed by each customer is called the:

(Multiple Choice)

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Question 106

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. -

(Essay)

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Question 107

Every controlling account must have its own:

(Multiple Choice)

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Question 108

The side that increases the balance of the Sales Discount account is:

(Multiple Choice)

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Question 109

Individual credit customer accounts are kept in the Accounts Receivable Subsidiary Ledger.

(True/False)

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Question 110

B&B Lumber reports gross sales of $120,000. If sales returns and allowances are $11,000 and sales discounts are $2,500, what are the net sales?

(Multiple Choice)

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Question 111

A characteristic of Sales Returns and Allowances is that:

(Multiple Choice)

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Question 112

Prepare the necessary general journal entry for December 4. __________

(Essay)

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Question 113

The arrangements between buyer and seller as to when payments for merchandise are to be made are called:

(Multiple Choice)

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Question 114

Jane's Jewelry sold 50 necklaces for $45 each to a credit customer. The invoice included a 4% sales tax and payment terms of 7/10, n/30. In addition, 5 necklaces were returned prior to payment. The entry to record the return would include: (Round your calculation to the nearest whole dollar.)

(Multiple Choice)

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Question 115

Net Sales equals Gross Sales - Sales Returns and Allowances - Accounts Receivable.

(True/False)

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Question 116

A sales discount correctly taken by the charge customer was debited to Sales at the time the entry was recorded. This error will cause:

(Multiple Choice)

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Question 117

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

(Multiple Choice)

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Question 118

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

(True/False)

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Question 119

Received payment, within the discount period, for merchandise sold previously. This will be recorded with:

(Multiple Choice)

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Question 120

Exam 9: Sales and Cash Receipts

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. -

Betsy's pottery sold 300 tiles at $40 each to a charge customer, terms 1/10, n/30. Which entry is required to record this transaction? (Round intermediary calculations to the nearest cent and final answers to the whole dollar.)

Explain how the record keeping differs between a cash sale and a credit sale.

A record showing the activity and the balances owed by each customer is called the:

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. -

Every controlling account must have its own:

The side that increases the balance of the Sales Discount account is:

Individual credit customer accounts are kept in the Accounts Receivable Subsidiary Ledger.

B&B Lumber reports gross sales of $120,000. If sales returns and allowances are $11,000 and sales discounts are $2,500, what are the net sales?

A characteristic of Sales Returns and Allowances is that:

Prepare the necessary general journal entry for December 4. __________________________________________ __________ __________ __________________________________________ __________ __________ __________________________________________ __________ __________

The arrangements between buyer and seller as to when payments for merchandise are to be made are called:

Jane's Jewelry sold 50 necklaces for $45 each to a credit customer. The invoice included a 4% sales tax and payment terms of 7/10, n/30. In addition, 5 necklaces were returned prior to payment. The entry to record the return would include: (Round your calculation to the nearest whole dollar.)

Net Sales equals Gross Sales - Sales Returns and Allowances - Accounts Receivable.

A sales discount correctly taken by the charge customer was debited to Sales at the time the entry was recorded. This error will cause:

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

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

Received payment, within the discount period, for merchandise sold previously. This will be recorded with:

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

Filters

Prepare the necessary general journal entry for December 4. __________