Exam 7: Accounting for Sales and Accounts Receivable

In a firm that uses special journals, the acceptance of a return of merchandise from a credit customer is recorded in the

If a firm had sales of $68,000 during a period and sales returns and allowances of $5,600, its net sales were

In a sales journal used to record taxable sales, the total of the Accounts Receivable column should equal

After all postings have been made, the totals of the balances in the accounts receivable subsidiary ledger should equal the balance of the Accounts Receivable account in the general ledger.

In a firm that uses special journals, a sale of merchandise on credit is recorded in the

For each of the transactions listed below, select the journal that should be used to record the transaction. Use CR for cash receipts journal, CP for cash payments journal, S for sales journal, P for purchases journal, and G for general journal. -Collected sums on account from credit customers

The quantity of goods kept on hand to sell to consumers is called ________.

The Sales account is classified as a(n)

Ables Budget Boutique uses special journals. If a credit customer returns $40 of goods on which $3 of sales tax was charged, identify the statement below that would be correct when posting the transaction.

The amount of the trade discount taken by the customer is recorded as a(n)

Hour Place Clock Shop sold a grandfather clock for $2,250 subject to a 9% sales tax. The entry in the sales journal will include a debit to Accounts Receivable for

Which of the following statements is not correct?

In a firm that uses special journals, the sale of merchandise for cash is recorded in the

A cash customer purchased $3,000 of merchandise on which sales tax of 7% was charged. The customer subsequently returned $500 of the merchandise for a refund. The amount of the cash refund is

Merchandise is sold on credit for $900 plus 5 percent sales tax. The entry in the sales journal will include a debit to Accounts Receivable for

The individual amounts in the Accounts Receivable Debit column of a sales journal should be posted to the accounts receivable subsidiary ledger, and the column total should be posted to the Accounts Receivable account in the general ledger.

For each of the transactions listed below, select the journal that should be used to record the transaction. Use CR for cash receipts journal, CP for cash payments journal, S for sales journal, P for purchases journal, and G for general journal. -Issued a check to pay a creditor on account

When a business makes a sale on a bank credit card, the business is ultimately responsible for collecting the amount owed from the customer.

One of the customer accounts from the accounts receivable ledger for Paragon Consulting Services is shown below. Explain each of the entries that have been posted to this customer's subsidiary ledger account.