Exam 9: Sales and Cash Receipts

Secret Trails received payment in full within the credit period for horse boarding for $900 plus 6% sales tax.Terms of the sale were 2/10,n/30.Which entry is required to record this payment?

Sold merchandise subject to a sales tax,accepting cash.This will be recorded with:

Hardware Restoration reports net sales of $50,000.If sales returns and allowances are $10,000 and sales discounts are $1,500,what are gross sales?

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 return would include:

A checkmark in the PR column in the general journal means:

Payment for merchandise sold on credit for $100 subject to 1/10 n/30 was received within the discount period-$99 was received.This was recorded with a debit to Sales Discounts for $1,a debit to Cash for $99,and a credit to Accounts Receivable $100,but no mention was made of the subsidiary ledger account.This error will cause:

A characteristic of Sales Returns and Allowances is that:

The document indicating to the customer that the seller is reducing the amount owed by the customer is:

Merchandise sold on credit was returned for credit and recorded with a debit to Sales Returns and Allowances and a credit to Accounts Payable.This error will cause:

The arrangements between buyer and seller as to when payments for merchandise are to be made are called:

The principal ledger containing all the balance sheet and income statement accounts is the:

A reduction given to customers for early payment is a:

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 25.

The length of time the customer is allowed to repay the bill is the:

Sales Discounts is an expense account.

Explain why the account Sales Tax Payable is credited when a sale is made subject to a sales tax?

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 Professional Fees Earned

Medeco sold goods for $100 to a charge customer.The customer returned for credit $25 worth of goods.Terms of the sale were 1/10,n/30.If the customer pays the amount owed within the discount period,what is the amount the customer should pay?

Determine the amount of cash collected at the time of making a sale of $7,500 worth of merchandise subject to a 6% sales tax. $ ________

Explain how the record keeping differs between a cash sale and a credit sale.