Question 1

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 D

Question 2

Sales tax collected by the seller increases the seller's total revenue.

Accepted Answer

A) True 
 B)False  False

Question 3

The accounts receivable subsidiary ledger:

Accepted Answer

A) is organized in alphabetical order. 
B) is not kept in the same book as Accounts Receivable. 
C) should equal the controlling account in the general ledger. 
D) All of the above are correct. 
A) is organized in alphabetical order. 
B) is not kept in the same book as Accounts Receivable. 
C) should equal the controlling account in the general ledger. 
D) All of the above are correct. D

Question 4

Use the following information to answer the questions below:
   The Net Sales are ________.

Accepted Answer

The answer of Use the following information to answer the...

Question 5

The general ledger and the accounts receivable subsidiary ledger are the same book.

Accepted Answer

A) True 
 B)False

Question 6

The contra-revenue accounts include:

Accepted Answer

A) Sales Tax Payable. 
B) Sales Returns and Allowances. 
C) Sales Discount. 
D) Both B and C are correct. 
A) Sales Tax Payable. 
B) Sales Returns and Allowances. 
C) Sales Discount. 
D) Both B and C are correct.

Question 7

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?

Accepted Answer

A) $74.25 
B) $75.00 
C) $100.00 
D) $90.00 
A) $74.25 
B) $75.00 
C) $100.00 
D) $90.00

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Accounts of a single type are kept in this ledger:

Accepted Answer

A) supplemental ledger. 
B) additional ledger. 
C) subsidiary ledger. 
D) None of these answers are correct. 
A) supplemental ledger. 
B) additional ledger. 
C) subsidiary ledger. 
D) None of these answers are correct.

Question 10

The credit period is longer than the discount period.

Accepted Answer

A) True 
 B)False

Question 11

Received payment, within the discount period, for merchandise sold previously. 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 12

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.
  
-Prepare the necessary general journal entry for April 25.

Accepted Answer

The answer of The Dairy Co. had the following transactions...

Question 13

Every controlling account must have its own:

Accepted Answer

A) revenue ledger. 
B) general ledger. 
C) subsidiary ledger. 
D) general journal. 
A) revenue ledger. 
B) general ledger. 
C) subsidiary ledger. 
D) general journal.

Question 14

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 15

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.
  
-The following are transactions for Brian for the month of October. Indicate how the following transactions would be recorded by completing the necessary journal entries as appropriate (omit explanations).

Accepted Answer

The answer of Plymouth Sharks Hockey Accessories had the following...

Question 16

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.
  
-Prepare the necessary general journal entry for April 15.

Accepted Answer

The answer of The Dairy Co. had the following transactions...

Question 17

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

Accepted Answer

A) credit memorandum. 
B) sales discount. 
C) sales returns and allowances. 
D) schedule of accounts receivable. 
A) credit memorandum. 
B) sales discount. 
C) sales returns and allowances. 
D) schedule of accounts receivable.

Question 18

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.
-

Accepted Answer

The answer of For each of the following, identify in...

Question 19

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.
  
-Prepare the necessary general journal entry for December 10.

Accepted Answer

The answer of Plymouth Sharks Hockey Accessories had the following...

Question 20

Sales Returns and Allowances is a contra-asset.

Accepted Answer

A) True 
 B)False

Exam 9: Sales and Cash Receipts

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

Sales tax collected by the seller increases the seller's total revenue.

The accounts receivable subsidiary ledger:

Use the following information to answer the questions below: The Net Sales are ________.

The general ledger and the accounts receivable subsidiary ledger are the same book.

The contra-revenue accounts include:

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?

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

Accounts of a single type are kept in this ledger:

The credit period is longer than the discount period.

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

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. -Prepare the necessary general journal entry for April 25.

Every controlling account must have its own:

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

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. -Prepare the necessary general journal entry for April 15.

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

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. -

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. -Prepare the necessary general journal entry for December 10.

Sales Returns and Allowances is a contra-asset.

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

Filters