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 30.

When a customer returns defective office supplies the Sales Returns and Allowances account will be debited.

The contra-revenue accounts include:

Which of the following statements about subsidiary ledgers is most accurate?

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

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

Sales Returns and Allowances is a contra-revenue account with a normal credit balance.

The Coral 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. July 16 Sold merchandise on account with an invoice price of $\$ 4,500$ to Carter and Co. July 16 Sold merchandise on account with an invoice price of $\$ 5,000$ to the Taylor Co. July 20 Taylor 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 Taylor Co. -Prepare the necessary general journal entry for July 20.

R&R Lumber reports gross sales of $70,000.If sales returns and allowances are $10,000 and sales discounts are $3,000,what are the net sales?

Accounts of a single type are kept in this ledger:

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 16.

Define and compare the accounts receivable subsidiary ledger with the controlling account,Accounts Receivable.

The normal balance of Sales Tax Payable is a credit.

The balance in the Accounts Receivable account is $2,200 debit.Therefore,the balances in the subsidiary ledger should be $2,200.

Lisa's Blankets and Bedding had a sale of $350 to a charge customer,terms 1/15,n/30.Lisa should record this transaction as follows:

Merchants who buy goods from wholesalers for resale to customers are:

Zach returned $200 of merchandise to Secret Trails.His original purchase was $400,with terms 1/10,n/30.If Justin pays the balance of his account after the discount period,how much should he pay?

Entries to customers' accounts for sales are posted in 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. - Column 1 Column 2 Column 3 Sales Discounts

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 Sales