Question 1

When using a subsidiary ledger, the Accounts Receivable account in the general ledger is called the:

Accepted Answer

A) master account. 
B) subsidiary account. 
C) receivable account. 
D) controlling account. 
A) master account. 
B) subsidiary account. 
C) receivable account. 
D) controlling account.

Question 2

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

Accepted Answer

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

Question 3

When you record the entry to the subsidiary ledger and place the checkmark in the PR column, it is not necessary to post to the Accounts Receivable controlling account.

Accepted Answer

A) True 
 B)False

Question 4

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 20.

Accepted Answer

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

Question 5

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 6

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 7

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 8

The normal balance of Sales Tax Payable is a credit.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) credit terms. 
B) net cash. 
C) cash on demand. 
D) gross cash. 
A) credit terms. 
B) net cash. 
C) cash on demand. 
D) gross cash.

Question 10

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

Accepted Answer

With a cash sale it is the customer's re

Question 11

A characteristic of Sales Returns and Allowances is that:

Accepted Answer

A) it has a debit balance. 
B) it tracks returns from customers. 
C) it is a contra-revenue account. 
D) All of these answers are correct. 
A) it has a debit balance. 
B) it tracks returns from customers. 
C) it is a contra-revenue account. 
D) All of these answers are correct.

Question 12

Define and compare the accounts receivable subsidiary ledger with the controlling account, Accounts Receivable.

Accepted Answer

Accounts receivable subsidiary ledger is

Question 13

If management wanted to determine if customers were returning goods at a higher rate than usual it could use the Sales Returns and Allowances account to analyze the information.

Accepted Answer

A) True 
 B)False

Question 14

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 payment would include:

Accepted Answer

A) a credit to Cash for $625.00. 
B) a credit to Cash for $662.50. 
C) a credit to Accounts Receivable for $625.00. 
D) a credit to Accounts Receivable for $662.50. 
A) a credit to Cash for $625.00. 
B) a credit to Cash for $662.50. 
C) a credit to Accounts Receivable for $625.00. 
D) a credit to Accounts Receivable for $662.50.

Question 15

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

Accepted Answer

Sales Tax Payable is a liabili

Question 16

Sales Discounts is an expense account.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

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

Question 18

Sales is a revenue account.

Accepted Answer

A) True 
 B)False

Question 19

R&R Lumber reports gross sales of $70,000. If sales returns and allowances are $10,000 and sales discounts are $3,000, what are the net sales?

Accepted Answer

A) $83,000 
B) $63,000 
C) $57,000 
D) $70,000 
A) $83,000 
B) $63,000 
C) $57,000 
D) $70,000

Question 20

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.

Exam 9: Sales and Cash Receipts

When using a subsidiary ledger, the Accounts Receivable account in the general ledger is called the:

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

When you record the entry to the subsidiary ledger and place the checkmark in the PR column, it is not necessary to post to the Accounts Receivable controlling account.

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 20.

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

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 normal balance of Sales Tax Payable is a credit.

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

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

A characteristic of Sales Returns and Allowances is that:

Define and compare the accounts receivable subsidiary ledger with the controlling account, Accounts Receivable.

If management wanted to determine if customers were returning goods at a higher rate than usual it could use the Sales Returns and Allowances account to analyze the information.

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 payment would include:

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

Sales Discounts is an expense account.

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

Sales is a revenue account.

R&R Lumber reports gross sales of $70,000. If sales returns and allowances are $10,000 and sales discounts are $3,000, what are the net sales?

Sales Tax Payable is a:

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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