Exam 9: Sales and Cash Receipts

Kristi's pottery sold 200 tiles at $25.00 each to a charge customer, terms 1/10, n/30. Which entry is required to record this transaction?

The return of merchandise by a credit customer was recorded with a debit to Accounts Payable and a credit to Accounts Receivable and the subsidiary ledger. This error will cause:

If a customer returns merchandise, the income for that period will be reduced.

The collection on account within the 1/10 n/30 discount period was recorded using a 10% discount rather than a 1% discount in both the controlling and subsidiary accounts. This error will cause:

Merchandise is:

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 16, Sold merchandise on account with an invoice price of $5,000 to the Taylor Co.

Sold Merchandise for Cash subject to a sales tax accepting cash. This will be recorded with:

The time frame when customers are allowed to pay their bills and still be eligible for a discount is the:

The balance in the Accounts Receivable account is $2,200 debit. Therefore, the balances in the subsidiary ledger should be $2,200.

Sue's Jewelry sold 20 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 original sale would include:

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

A characteristic of the account, Sales Discount, is:

A wholesale customer returned merchandise having already paid for it within the cash discount period. The return will be recorded with:

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?

Net Sales equals Gross Sales - Sales Returns and Allowances - Cash Sales.

A characteristic of a schedule of accounts receivable is that:

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:

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 2.

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

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 16.