Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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 3

The normal balance of the Sales Returns and Allowances account is:

Accepted Answer

A) a credit. 
B) a debit. 
C) zero. 
D) It doesn't have a normal balance. 
A) a credit. 
B) a debit. 
C) zero. 
D) It doesn't have a normal balance.

Question 4

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

Accepted Answer

A) Sales Returns and Allowances. 
B) Sales Discount. 
C) the credit period. 
D) the discount period. 
A) Sales Returns and Allowances. 
B) Sales Discount. 
C) the credit period. 
D) the discount period.

Question 5

Entries to customers' accounts for sales are posted in the:

Accepted Answer

A) accounts receivable subsidiary ledger. 
B) accounts payable subsidiary ledger. 
C) fixed asset subsidiary ledger. 
D) cash subsidiary ledger. 
A) accounts receivable subsidiary ledger. 
B) accounts payable subsidiary ledger. 
C) fixed asset subsidiary ledger. 
D) cash subsidiary ledger.

Question 6

Sold merchandise on account would be recorded with:

Accepted Answer

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

Question 7

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 8

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?

Accepted Answer

A) $50,000 
B) $61,500 
C) $58,500 
D) $38,500 
A) $50,000 
B) $61,500 
C) $58,500 
D) $38,500

Question 9

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.
  
-Prepare the necessary general journal entry for July 28.

Accepted Answer

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

Question 10

Terms of 3/10, n/30 means that a customer is allowed a 10% discount in 30 days.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) the net income for the period to be overstated. 
B) the net income for the period to be understated. 
C) the sales discount account to be understated. 
D) the sales account to be overstated. 
A) the net income for the period to be overstated. 
B) the net income for the period to be understated. 
C) the sales discount account to be understated. 
D) the sales account to be overstated.

Question 12

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 13

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 4.

Accepted Answer

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

Question 14

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?

Accepted Answer

A) Debit Accounts Receivable; credit Sales for $500 
B) Debit Cash; credit Accounts Receivable for $500 
C) Debit Cash for $490, debit Sales Discount for $10; and credit Sales for $500 
D) Debit Cash for $490, debit Sales Discount for $10; and credit Accounts Receivable for $500 
A) Debit Accounts Receivable; credit Sales for $500 
B) Debit Cash; credit Accounts Receivable for $500 
C) Debit Cash for $490, debit Sales Discount for $10; and credit Sales for $500 
D) Debit Cash for $490, debit Sales Discount for $10; and credit Accounts Receivable for $500

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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?

Accepted Answer

A) $204.00 
B) $196.00 
C) $200.00 
D) $400.00 
A) $204.00 
B) $196.00 
C) $200.00 
D) $400.00

Question 17

Accounts in the accounts receivable subsidiary ledger are listed in order of how much is owed.

Accepted Answer

A) True 
 B)False

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

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 14.

Accepted Answer

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

Question 20

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.

Exam 9: Sales and Cash Receipts

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

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. $ ________

The normal balance of the Sales Returns and Allowances account is:

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

Entries to customers' accounts for sales are posted in the:

Sold merchandise on account would be recorded with:

Net sales equal:

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?

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. -Prepare the necessary general journal entry for July 28.

Terms of 3/10, n/30 means that a customer is allowed a 10% discount in 30 days.

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

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 4.

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?

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

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?

Accounts in the accounts receivable subsidiary ledger are listed in order of how much is owed.

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. -

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 14.

The liability account used to record sales tax owed is:

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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