Exam 9: Sales and Cash Receipts

The Dairy 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. April 13 Sold merchandise priced at $\$ 500$ to Jan Ellsworth on account. April 14 Sold merchandise priced at $\$ 350$ to a cash customer. April 15 Sold merchandise priced at $\$ 150$ 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 25.

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

Sales Discounts and Sales Returns and Allowances are expense accounts.

Sue's Jewelry sold 30 necklaces for $25 each to a credit customer.The invoice included a 6% sales tax and payment terms of 2/10,n/30.In addition,5 necklaces were returned prior to payment.The entry to record the payment would include:

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

When you record the entry to the subsidiary ledger and place the checkmark in the PR column,it is not necessary to post to the Accounts Receivable controlling account.

A characteristic of the account,Sales Discount,is:

The Dairy 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. April 13 Sold merchandise priced at $\$ 500$ to Jan Ellsworth on account. April 14 Sold merchandise priced at $\$ 350$ to a cash customer. April 15 Sold merchandise priced at $\$ 150$ 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.

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

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

The accounts receivable subsidiary ledger shows the amount owed from each customer.

When using a subsidiary ledger,the Accounts Receivable account in the general ledger is called the:

A characteristic of a schedule of accounts receivable is that:

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. - Column 1 Column 2 Column 3 Cleaning Expense

Unlimited Materials sold goods for $2,000 plus 6% sales tax to a charge customer,terms n/30.Which entry is required to record this transaction?

The accounts receivable subsidiary ledger:

The normal balance of the accounts receivable subsidiary ledger is:

Plymouth Sharks Hockey Accessories 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 and have a 2/10, n/30 discount terms. December 2 Sold merchandise priced at $\$ 100$ to Cathy Norton on account. December 4 5old merchandise priced at $\$ 125$ to a cash customer. December 10 Payment from Cathy Norton received. December 16 Eash customer returned \$47 worth of merchandise. -Prepare the necessary general journal entry for December 16.

An example of a subsidiary ledger is the accounts receivable ledger.

Monica's Closet received payment in full for goods sold within the discount period on a $500 sales invoice,terms 2/10,n/30.Which entry records this payment?