Question 1

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

Accepted Answer

A) general ledger. 
B) sales journal. 
C) cash receipts journal. 
D) accounts receivable subsidiary ledger. 
A) general ledger. 
B) sales journal. 
C) cash receipts journal. 
D) accounts receivable subsidiary ledger.

Question 2

If a credit memorandum is issued,what account will be decreased on the seller's books?

Accepted Answer

A) Accounts Receivable 
B) Accounts Payable 
C) Sales Discount 
D) Sales Returns and Allowances 
A) Accounts Receivable 
B) Accounts Payable 
C) Sales Discount 
D) Sales Returns and Allowances

Question 3

The controlling account is found in the subsidiary ledger and it summarizes or controls the general ledger account.

Accepted Answer

A) True 
 B)False

Question 4

Sales discounts are not taken on which of the following?

Accepted Answer

A) Sales Tax 
B) Freight 
C) Merchandise returned 
D) Sales Discounts are not taken on any of the above. 
A) Sales Tax 
B) Freight 
C) Merchandise returned 
D) Sales Discounts are not taken on any of the above.

Question 5

The credit period is longer than the discount period.

Accepted Answer

A) True 
 B)False

Question 6

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 16,Sold merchandise on account with an invoice price of $5,000 to the Taylor Co.

Accepted Answer

None

Question 7

The liability account used to record sales tax owed is:

Accepted Answer

A) Sales Tax Expense. 
B) Prepaid Taxes. 
C) Sales Tax Payable. 
D) Sales. 
A) Sales Tax Expense. 
B) Prepaid Taxes. 
C) Sales Tax Payable. 
D) Sales.

Question 8

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 13.

Accepted Answer

None

Question 9

Sold Merchandise for Cash subject to a sales tax accepting cash.This will be recorded with:

Accepted Answer

A) a credit to an asset account. 
B) a debit to a liability account. 
C) a debit to Capital. 
D) None of these are correct. 
A) a credit to an asset account. 
B) a debit to a liability account. 
C) a debit to Capital. 
D) None of these are correct.

Question 10

The time frame when customers are allowed to pay their bills and still be eligible for a discount is the:

Accepted Answer

A) credit period. 
B) discount period. 
C) closing period. 
D) due date. 
A) credit period. 
B) discount period. 
C) closing period. 
D) due date.

Question 11

Determine the amount to be paid within the discount period for a previous sale with an invoice price of $10,000,subject to credit terms of 1/10,n/30.
$ ________

Accepted Answer

The answer of Determine the amount to be paid within...

Question 12

Explain why,when a customer returns merchandise after it was paid for,he/she may or may not receive credit equal to the invoice value of the merchandise returned.

Accepted Answer

If the payment was made before

Question 13

Net sales equal:

Accepted Answer

A) gross sales. 
B) gross sales - sales returns and allowances. 
C) gross sales - sales returns and allowances - sales discounts. 
D) sales discounts. 
A) gross sales. 
B) gross sales - sales returns and allowances. 
C) gross sales - sales returns and allowances - sales discounts. 
D) sales discounts.

Question 14

If cash flow is so important to merchandisers,why do they extend credit to their customers?

Accepted Answer

A customer who is limited to m

Question 15

Sales Tax Payable is a:

Accepted Answer

A) liability account with a debit balance. 
B) liability account with a credit balance. 
C) contra-asset account with a debit balance. 
D) contra-asset account with a credit balance. 
A) liability account with a debit balance. 
B) liability account with a credit balance. 
C) contra-asset account with a debit balance. 
D) contra-asset account with a credit balance.

Question 16

Compare and discuss a discount period versus a credit period.

Accepted Answer

A credit period is the length of time al

Question 17

Urban Camping sold goods for $200 to a charge customer.The customer returned for credit $90 worth of goods.Which entry is required to record the return transaction?

Accepted Answer

A) Debit Sales Returns and Allowances $90; credit Accounts Receivable for $90 
B) Debit Sales Returns and Allowances for $90; credit Sales for $90 
C) Debit Sales $90; credit Sales Returns and Allowances $90 
D) Debit Accounts Receivable $90; credit Sales Returns and Allowances for $90 
A) Debit Sales Returns and Allowances $90; credit Accounts Receivable for $90 
B) Debit Sales Returns and Allowances for $90; credit Sales for $90 
C) Debit Sales $90; credit Sales Returns and Allowances $90 
D) Debit Accounts Receivable $90; credit Sales Returns and Allowances for $90

Question 18

Determine the amount of cash collected on a credit sale in the amount of $4,500,subject to a 6% sales tax when $500 worth of merchandise has already been returned for credit.
$ ________

Accepted Answer

The answer of Determine the amount of cash collected on...

Question 19

If a credit memorandum is issued,what account will be increased on the seller's books?

Accepted Answer

A) Accounts Receivable 
B) Accounts Payable 
C) Sales Discount 
D) Sales Returns and Allowances 
A) Accounts Receivable 
B) Accounts Payable 
C) Sales Discount 
D) Sales Returns and Allowances

Question 20

Determine the amount of cash collected at the time of making a sale of $1,000 worth of merchandise subject to a 6% sales tax.
$ ________

Accepted Answer

The answer of Determine the amount of cash collected at...

Exam 9: Sales and Cash Receipts

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

If a credit memorandum is issued,what account will be decreased on the seller's books?

The controlling account is found in the subsidiary ledger and it summarizes or controls the general ledger account.

Sales discounts are not taken on which of the following?

The credit period is longer than the discount period.

The liability account used to record sales tax owed is:

Sold Merchandise for Cash subject to a sales tax accepting cash.This will be recorded with:

The time frame when customers are allowed to pay their bills and still be eligible for a discount is the:

Determine the amount to be paid within the discount period for a previous sale with an invoice price of $10,000,subject to credit terms of 1/10,n/30. $ ________

Explain why,when a customer returns merchandise after it was paid for,he/she may or may not receive credit equal to the invoice value of the merchandise returned.

Net sales equal:

If cash flow is so important to merchandisers,why do they extend credit to their customers?

Sales Tax Payable is a:

Compare and discuss a discount period versus a credit period.

Urban Camping sold goods for $200 to a charge customer.The customer returned for credit $90 worth of goods.Which entry is required to record the return transaction?

Determine the amount of cash collected on a credit sale in the amount of $4,500,subject to a 6% sales tax when $500 worth of merchandise has already been returned for credit. $ ________

If a credit memorandum is issued,what account will be increased on the seller's books?

Determine the amount of cash collected at the time of making a sale of $1,000 worth of merchandise subject to a 6% sales tax. $ ________

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: The Conclusion of the Payroll Process

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, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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