Exam 9: Sales and Cash Receipts

Sales Discounts and Sales Returns and Allowances are expense accounts.

Determine the amount of net sales given: gross sales = $200,000 sales discounts = $25,000 sales returns and allowances = $40,000 $ ________

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

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:

To show that you have posted to an account in the General Ledger, you use a checkmark.

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. -

Compare and discuss a discount period versus a credit period.

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. -

Customer returned merchandise for credit. This will be recorded with:

Sales Tax Payable represents an asset on the books of the seller.

Collected a payment from a credit customer. This will be recorded with:

The total of all cash sales and credit sales equals:

Sales discounts are not taken on which of the following?

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

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. -

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

The Sales Returns and Allowances account is contra-revenue.

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:

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 16.