Question 1

Kay Sadia sold merchandise for $8,750 subject to a 6% sales tax. The entry in the sales journal will include a debit to Accounts Receivable for

Accepted Answer

A)  $9,275.00 
B)  $8,225.00 
C)  $8,750.00 
D)  $8,462.00 
A)  $9,275.00 
B)  $8,225.00 
C)  $8,750.00 
D)  $8,462.00

Question 2

For a retailer, bank credit card sales are like cash sales.

Accepted Answer

A) True 
 B)False

Question 3

A(n) ____________________ business sells goods that it purchases in finished form for resale.

Accepted Answer

The answer of A(n) ____________________ business sells goods that it...

Question 4

Selected balances from the general ledger of the All Star Video Rentals on July 31, 2013, are listed below. Use the appropriate data to prepare the Revenue section of the firm's income statement for the month ended July 31, 2013.

Accepted Answer

The answer of Selected balances from the general ledger of...

Question 5

Which of the following statements is correct?

Accepted Answer

A)  The sales journal is used for recording both cash sales and credit sales. 
B)  Since the sales journal is used for a single purpose, there is no need to enter any descriptions. 
C)  To provide an adequate audit trail, sales on credit should be recorded in both the sales journal and the general journal. 
D)  The complete information for each sale of merchandise on credit can be recorded on one line of the cash receipts journal. 
A)  The sales journal is used for recording both cash sales and credit sales. 
B)  Since the sales journal is used for a single purpose, there is no need to enter any descriptions. 
C)  To provide an adequate audit trail, sales on credit should be recorded in both the sales journal and the general journal. 
D)  The complete information for each sale of merchandise on credit can be recorded on one line of the cash receipts journal.

Question 6

Selected balances from the general ledger of the Valley Video Rentals on May 31, 2013, are listed below. Use the appropriate data to prepare the Revenue section of the firm's income statement for the month ended May 31, 2013.

Accepted Answer

The answer of Selected balances from the general ledger of...

Question 7

The Sales Returns and Allowances account has a normal debit balance.

Accepted Answer

A) True 
 B)False

Question 8

In some states, a firm receives a discount for paying the amount of sales tax due on time.

Accepted Answer

A) True 
 B)False

Question 9

When a business makes a sale on a bank credit card, the business is responsible for collecting from the customer.

Accepted Answer

A) True 
 B)False

Question 10

The sales journal for Carothers Company is shown below. Describe how the amounts would be posted to the general ledger accounts.

Accepted Answer

Dr. Accounts Receiva

Question 11

In a firm that uses special journals, an allowance given for damaged merchandise is recorded in the

Accepted Answer

A)  cash payments journal. 
B)  cash receipts journal. 
C)  purchases journal. 
D)  general journal. 
A)  cash payments journal. 
B)  cash receipts journal. 
C)  purchases journal. 
D)  general journal.

Question 12

The Sales Returns and Allowances account is presented

Accepted Answer

A)  on the balance sheet as a deduction from Accounts Receivable. 
B)  on the income statement as a deduction from Sales. 
C)  on the income statement as an addition to Sales. 
D)  on the balance sheet as a deduction from Capital. 
A)  on the balance sheet as a deduction from Accounts Receivable. 
B)  on the income statement as a deduction from Sales. 
C)  on the income statement as an addition to Sales. 
D)  on the balance sheet as a deduction from Capital.

Question 13

In a firm that uses special journals, the sale of merchandise for cash is recorded in the

Accepted Answer

A)  cash payments journal. 
B)  cash receipts journal. 
C)  sales journal. 
D)  purchases journal. 
A)  cash payments journal. 
B)  cash receipts journal. 
C)  sales journal. 
D)  purchases journal.

Question 14

If a firm does not have a sales returns and allowances journal, the entries for these transactions are made in

Accepted Answer

A)  the sales journal. 
B)  the general journal. 
C)  the cash receipts journal. 
D)  the cash payments journal. 
A)  the sales journal. 
B)  the general journal. 
C)  the cash receipts journal. 
D)  the cash payments journal.

Question 15

The Sales Returns and Allowances account has a normal ____________________ balance.

Accepted Answer

The answer of The Sales Returns and Allowances account has...

Question 16

Hugh Snow returned merchandise to Farley Co. The entry on the books of Farley company to record the return of merchandise from Hugh Snow would include a:

Accepted Answer

A)  Debit Accounts Payable 
B)  Credit to Purchase Returns and Allowances 
C)  Debit to Account Receivable 
D)  Debit Sales Returns and Allowances 
A)  Debit Accounts Payable 
B)  Credit to Purchase Returns and Allowances 
C)  Debit to Account Receivable 
D)  Debit Sales Returns and Allowances

Question 17

The abbreviation S1 in the Posting Reference column of an account shows that the data was posted from page 1 of the sales journal.

Accepted Answer

A) True 
 B)False

Question 18

A merchandising business sells goods that it produces.

Accepted Answer

A) True 
 B)False

Question 19

On the Income Statement, Sales Returns and Allowances have the effect of

Accepted Answer

A)  Increasing total revenue 
B)  Increasing total expenses 
C)  Decreasing total revenue 
D)  Decreasing total expenses 
A)  Increasing total revenue 
B)  Increasing total expenses 
C)  Decreasing total revenue 
D)  Decreasing total expenses

Question 20

In a firm that uses special journals, the acceptance of a return of merchandise from a credit customer is recorded in the

Accepted Answer

A)  cash receipts journal. 
B)  sales journal. 
C)  cash payments journal. 
D)  general journal. 
A)  cash receipts journal. 
B)  sales journal. 
C)  cash payments journal. 
D)  general journal.

Kay Sadia sold merchandise for $8,750 subject to a 6% sales tax. The entry in the sales journal will include a debit to Accounts Receivable for

For a retailer, bank credit card sales are like cash sales.

A(n) ____________________ business sells goods that it purchases in finished form for resale.

Selected balances from the general ledger of the All Star Video Rentals on July 31, 2013, are listed below. Use the appropriate data to prepare the Revenue section of the firm's income statement for the month ended July 31, 2013.

Which of the following statements is correct?

Selected balances from the general ledger of the Valley Video Rentals on May 31, 2013, are listed below. Use the appropriate data to prepare the Revenue section of the firm's income statement for the month ended May 31, 2013.

The Sales Returns and Allowances account has a normal debit balance.

In some states, a firm receives a discount for paying the amount of sales tax due on time.

When a business makes a sale on a bank credit card, the business is responsible for collecting from the customer.

The sales journal for Carothers Company is shown below. Describe how the amounts would be posted to the general ledger accounts.

In a firm that uses special journals, an allowance given for damaged merchandise is recorded in the

The Sales Returns and Allowances account is presented

In a firm that uses special journals, the sale of merchandise for cash is recorded in the

If a firm does not have a sales returns and allowances journal, the entries for these transactions are made in

The Sales Returns and Allowances account has a normal ____________________ balance.

Hugh Snow returned merchandise to Farley Co. The entry on the books of Farley company to record the return of merchandise from Hugh Snow would include a:

The abbreviation S1 in the Posting Reference column of an account shows that the data was posted from page 1 of the sales journal.

A merchandising business sells goods that it produces.

On the Income Statement, Sales Returns and Allowances have the effect of

In a firm that uses special journals, the acceptance of a return of merchandise from a credit customer is recorded in the

Accounting: the Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and the Postclosing Trial Balance

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Filters

Exam 7: Accounting for Sales and Accounts Receivable

Kay Sadia sold merchandise for $8,750 subject to a 6% sales tax. The entry in the sales journal will include a debit to Accounts Receivable for

For a retailer, bank credit card sales are like cash sales.

A(n) ____________________ business sells goods that it purchases in finished form for resale.

Selected balances from the general ledger of the All Star Video Rentals on July 31, 2013, are listed below. Use the appropriate data to prepare the Revenue section of the firm's income statement for the month ended July 31, 2013.

Which of the following statements is correct?

Selected balances from the general ledger of the Valley Video Rentals on May 31, 2013, are listed below. Use the appropriate data to prepare the Revenue section of the firm's income statement for the month ended May 31, 2013.

The Sales Returns and Allowances account has a normal debit balance.

In some states, a firm receives a discount for paying the amount of sales tax due on time.

When a business makes a sale on a bank credit card, the business is responsible for collecting from the customer.

The sales journal for Carothers Company is shown below. Describe how the amounts would be posted to the general ledger accounts.

In a firm that uses special journals, an allowance given for damaged merchandise is recorded in the

The Sales Returns and Allowances account is presented

In a firm that uses special journals, the sale of merchandise for cash is recorded in the

If a firm does not have a sales returns and allowances journal, the entries for these transactions are made in

The Sales Returns and Allowances account has a normal ____________________ balance.

Hugh Snow returned merchandise to Farley Co. The entry on the books of Farley company to record the return of merchandise from Hugh Snow would include a:

The abbreviation S1 in the Posting Reference column of an account shows that the data was posted from page 1 of the sales journal.

A merchandising business sells goods that it produces.

On the Income Statement, Sales Returns and Allowances have the effect of

In a firm that uses special journals, the acceptance of a return of merchandise from a credit customer is recorded in the

Accounting: the Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and the Postclosing Trial Balance

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Filters