Exam 7: Accounting for Sales and Accounts Receivable

Barnett's Electronics Store had the following transactions during the month of January 2013. Record the transactions on page 1 of a sales journal and page 1 of a general journal. Total, prove, and rule the sales journal as of January 31.

After all postings have been made, the total of the schedule of accounts receivable should equal

The entry to record a sale of merchandise on credit that is subject to sales tax includes a(n) ____________________ to Sales Tax Payable.

To find the balance due from an individual customer, the accountant would refer to

The entry to record a return by a credit customer of defective merchandise on which no sales tax was charged includes

In a firm that uses special journals, a sale of merchandise on credit is recorded in the

The Sales Returns and Allowances account is classified as

The stock of goods kept on hand to sell to consumers is called _________________________.

The balance of a customer's account in the accounts receivable ledger is circled to show that it is a debit amount.

On Deck Sports Memorabilia store sells a Babe Ruth rookie card for $4,600 on account. If the sales tax on the sale is 8%, what is the amount debited to Accounts Receivable?

Which of the following describes Sales Tax Payable?

The Sales account is classified as

The balance of the Sales Returns and Allowances account is subtracted from the balance of the Accounts Receivable account in the Assets section of the balance sheet.

In a sales journal used to record taxable sales, the total of the Accounts Receivable column should equal

If a firm had sales of $50,000 during a period and sales returns and allowances of $4,000, its net sales were

A(n) ____________________ is a business form that is issued to a credit customer upon acceptance of the return of damaged goods.

To indicate that an amount has been posted from the sales journal to the accounts receivable subsidiary ledger, a(n) ____________________ is placed in the Posting Reference column of the journal.

A wholesale business does not need a Sales Tax Payable account.

A wholesale firm made sales with the following list prices and trade discounts. Calculate the amount the firm will use to record each sale in the sales journal. Show your calculation. A. List price of $900 and trade discount of 45 percent. B. List price of $500 and trade discount of 35 percent. C. List Price of $1,600 and trade discounts of 25 and 15 percent.

A firm that sells goods that it purchases for re-sale is a