Exam 7: Accounting for Sales and Accounts Receivable

Selected balances from the general ledger of the All Star Video Rentals on July 31, 2019, are listed below. Use the appropriate data to prepare the Revenue section of the firm's income statement for the month ended July 31, 2019. Accounts Receivable \ 12,500 Sales Tax Payable 1,475 Sales 32,500 Sales Returns and Allowances 3,100

(Essay)

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Question 81

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. -Received an additional cash investment from the owner

(Multiple Choice)

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Question 82

Which of the following describes Sales Tax Payable?

(Multiple Choice)

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Question 83

On Deck Sports Memorabilia store sells a Babe Ruth rookie card for $10,500 on account. If the sales tax on the sale is 7%, what is the amount debited to Accounts Receivable.

(Multiple Choice)

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Question 84

A wholesale firm made sales with the following list prices and trade discounts. Calculate the amount the firm will use to record each sale in the sales journal. Show your calculation. Round your answers to the nearest dollar. A. List price of $2,300 and trade discount of 40 percent. B. List price of $3,500 and trade discounts of 25 and 15 percent.

(Short Answer)

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Question 85

Kay Sadia sold merchandise for $15,200 subject to a 7% sales tax. The entry in the sales journal will include a credit to Sales tax payable for

(Multiple Choice)

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Question 86

A(n)________ journal is a journal that is used to record only one type of transaction.

(Short Answer)

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Question 87

The balances of selected accounts of Casper Company on February 28, 2019, were as follows: Sales $200,000 and Sales Returns and Allowances $5,000. The firm's net sales are subject to an 8 percent sales tax. Record the payment of the sales tax payable on February 28, 2019 on page 8 of a general journal.

(Essay)

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Question 88

A list of all unpaid balances in the accounts receivable subsidiary ledger is called a(n)________ of accounts receivable.

(Short Answer)

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Question 89

Merchandise is sold on credit for $900 plus 5% sales tax. The entry in the sales journal will include a credit to Sales for

(Multiple Choice)

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Question 90

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

(Essay)

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Question 91

Selected balances from the general ledger of the Loren Company on March 31, 2019, are listed below. Use the appropriate data to prepare the Revenue section of the firm's income statement for the month ended March 31, 2019. Sales \ 16,250 Accounts Receivable 6,250 Sales Returns and Allowances 1,550 Sales Tax Payable 68

(Essay)

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Question 92

The accounts receivable ledger for Acme Auto Parts is shown below. Prepare a schedule of accounts receivable as of March 31, 2019.

(Essay)

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Question 93

A wholesale firm sold merchandise with a list price of $1,800 and trade discounts of 30 and 15 percent. What amount will be credited to sales in the sales journal?

(Multiple Choice)

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Question 94

All That Jazz Music Store had the following transactions during the month of August 2019. Record the transactions on page 15 of a sales journal and page 18 of a general journal. Total, prove, and rule the sales journal as of August 31. Aug. 5 Sold a violin to Jim Stombres. Issued Sales Slip 515 for $6,500 plus sales tax of $325. 6 Sold a trombone to Kevin Folk. Issued Sales Slip 516 for $1,800 plus sales tax of $90. 8 Gave Jim Stombres an allowance for scratches on his violin sold on August 5, Sales Slip 515. Issued Credit Memorandum 318 for $105, which includes $5.00 of sales tax. 15 Sold a trumpet to Jason Streng. Issued Sales Slip 517 for $2,500 plus sales tax of $125. 20 Sold a synthesizer to Samuel Jacks. Issued Sales Slip 518 for $175 plus sales tax of $8.75. 25 Accepted a return of a defective synthesizer from Samuel Jacks. The synthesizer was originally sold on August 20, Sales Slip 518. Issued Credit Memorandum 319 for $183.75, which includes sales tax of $8.75.

(Essay)

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Question 95

The Sales Returns and Allowances account is classified as

(Multiple Choice)

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Question 96

The sales journal for Carothers Company is shown below. Describe how the amounts would be posted to the general ledger accounts.

(Short Answer)

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Question 97

ABC Company uses special journals. When making a credit sale of $700 to a customer, the company would record the sale by:

(Multiple Choice)

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Question 98

Match the description with the accounting terms.

A subsidiary ledger that contains credit customer accounts

Accounts receivable ledger

An account with a debit balance, which is contrary to the normal balance for a revenue account

Charge-account sales

A note verifying that a customer's account is being reduced by the amount of a sales return or sales allowance plus any sales tax that may have been involved

Contra revenue account

Correct Answer:

Verified

A subsidiary ledger that contains credit customer accounts

An account with a debit balance, which is contrary to the normal balance for a revenue account

A note verifying that a customer's account is being reduced by the amount of a sales return or sales allowance plus any sales tax that may have been involved

A firm's acceptance of a return of goods from a customer

A ledger dedicated to accounts of a single type and showing details to support a general ledger account

A business that sells services

The list price less all trade discounts

The stock of goods a merchandising business keeps on hand

A system that allows the sale of services or goods with the understanding that payment will be made at a later date

A reduction in the price originally charged to customers for goods or services

An established retail price

A business that manufactures or distributes goods to retail businesses or large consumers such as hotels and hospitals

A reduction from list price

The difference between the balance in the Sales account and the balance in the Sales Returns and Allowances account

A special journal used to record sales of merchandise on credit

An account that links a subsidiary ledger and the general ledger since its balance summarizes the balances of the accounts in the subsidiary ledger

A customer billing for merchandise bought on credit

A journal used to record only one type of transaction

A business that sells goods purchased for resale

A business that sells directly to individual consumers

A business that sells goods that it has produced

Sales made through the use of open-account credit or one of various types of credit cards

A listing of all balances of the accounts in the accounts receivable subsidiary ledger

(Matching)

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Question 99

Showing 81 - 99 of 99

Exam 7: Accounting for Sales and Accounts Receivable

Which of the following describes Sales Tax Payable?

On Deck Sports Memorabilia store sells a Babe Ruth rookie card for $10,500 on account. If the sales tax on the sale is 7%, what is the amount debited to Accounts Receivable.

Kay Sadia sold merchandise for $15,200 subject to a 7% sales tax. The entry in the sales journal will include a credit to Sales tax payable for

A(n)________ journal is a journal that is used to record only one type of transaction.

A list of all unpaid balances in the accounts receivable subsidiary ledger is called a(n)________ of accounts receivable.

Merchandise is sold on credit for $900 plus 5% sales tax. The entry in the sales journal will include a credit to Sales for

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

The accounts receivable ledger for Acme Auto Parts is shown below. Prepare a schedule of accounts receivable as of March 31, 2019.

A wholesale firm sold merchandise with a list price of $1,800 and trade discounts of 30 and 15 percent. What amount will be credited to sales in the sales journal?

The Sales Returns and Allowances account is classified as

The sales journal for Carothers Company is shown below. Describe how the amounts would be posted to the general ledger accounts.

ABC Company uses special journals. When making a credit sale of $700 to a customer, the company would record the sale by:

Accounting: The Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and Teh Postclosing Trial Balance

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analysis

The Statement of Cash Flows

Departmentalized Profit and Cost Centers

Accounting for Manufacturing Activities

Job Order Cost Accounting

Process Cost Accounting

Controlling Manufacturing Costs: Standard Costs

Cost-Revenue Analysis for Decision Making

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