Exam 9: Sales and Purchases

XYZ Motors makes a sale of $15,600 on account. The sales tax rate is 8%. What is the amount debited to Accounts Receivable in the general journal on the sale of merchandise?

(Multiple Choice)

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Question 21

Match the terms that follow with the correct definitions. -From the viewpoint of the buyer, a business form prepared by the seller that lists the items shipped, their cost, and the shipping terms is a(n)

(Multiple Choice)

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Question 22

Amounts are posted individually from the purchases journal to the

(Multiple Choice)

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Question 23

An account that is used to record merchandise bought for resale:

(Multiple Choice)

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Question 24

The use of a purchases journal makes any posting to the general ledger unnecessary.

(True/False)

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Question 25

A single summarizing account in the general ledger, representing all the accounts in a particular subsidiary ledger, is referred to as a

(Multiple Choice)

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Question 26

Type of account and normal balance of Sales Discount:

(Multiple Choice)

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Question 27

A schedule of Accounts Receivable is prepared from:

(Multiple Choice)

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Question 28

A controlling account can be found in the

(Multiple Choice)

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Question 29

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

(True/False)

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Question 30

The Accounts Payable account in the general ledger controls the accounts payable ledger.

(True/False)

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Question 31

Match the correct definitions below with the terms.

Group of accounts representing the details of a controlling account

FOB destination

Title or ownership changes hands when the buyer receives the goods.

Sales Returns and Allowances

Account in the general ledger that summarizes the balance of accounts in a subsidiary ledger

Controlling account

Correct Answer:

Verified

Group of accounts representing the details of a controlling account

Title or ownership changes hands when the buyer receives the goods.

Account in the general ledger that summarizes the balance of accounts in a subsidiary ledger

Account used to record the reduction in sales due to either the physical return of goods or defective goods

Subsidiary ledger that presents the individual accounts of credit customers

Buyer responsibility for paying the freight cost.

Special journal used for recording the purchase of merchandise on account only

Journal in which returns and allowances (on account) are recorded

Business form prepared by the seller

(Matching)

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Question 32

When goods previously purchased on account are returned for credit, the journal entry is

(Multiple Choice)

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Question 33

What is the difference between a periodic and perpetual inventory system for merchandise inventory?

(Essay)

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Question 34

J. Smith purchases merchandise from Hi-View Industries for $25,250 on account. Upon inspection of the merchandise received, J. Smith discovers damaged goods in the amount of $1,000 and requests to return the damaged merchandise to Hi-View Industries. What source document would Hi-View industries use for the journal entry to process this return?

(Multiple Choice)

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Question 35

Which of the following is an example of good internal controls over purchases?

(Multiple Choice)

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Question 36

Assuming the use of special journals, the sale of merchandise to Jerri Wiles on account would be recorded in the

(Multiple Choice)

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Question 37

Azure Company uses the perpetual inventory system. On May 3, it sold merchandise on account to Sigma Enterprises, invoice no. 672, $4,500. Cost of inventory sold is $3,850. Which of the following journal entries records the effect on merchandise inventory?

(Multiple Choice)

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Question 38

After posting the total goods sold on account to the Accounts Receivable account, the accountant places a check mark below the Accounts Receivable column in the sales journal.

(True/False)

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Question 39

Transactions in the sales journal are posted both to the general ledger and the accounts receivable ledger.

(True/False)

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Question 40

Showing 21 - 40 of 109

XYZ Motors makes a sale of $15,600 on account. The sales tax rate is 8%. What is the amount debited to Accounts Receivable in the general journal on the sale of merchandise?

Match the terms that follow with the correct definitions. -From the viewpoint of the buyer, a business form prepared by the seller that lists the items shipped, their cost, and the shipping terms is a(n)

Amounts are posted individually from the purchases journal to the

An account that is used to record merchandise bought for resale:

The use of a purchases journal makes any posting to the general ledger unnecessary.

A single summarizing account in the general ledger, representing all the accounts in a particular subsidiary ledger, is referred to as a

Type of account and normal balance of Sales Discount:

A schedule of Accounts Receivable is prepared from:

A controlling account can be found in the

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

The Accounts Payable account in the general ledger controls the accounts payable ledger.

When goods previously purchased on account are returned for credit, the journal entry is

What is the difference between a periodic and perpetual inventory system for merchandise inventory?

Which of the following is an example of good internal controls over purchases?

Assuming the use of special journals, the sale of merchandise to Jerri Wiles on account would be recorded in the

Azure Company uses the perpetual inventory system. On May 3, it sold merchandise on account to Sigma Enterprises, invoice no. 672, $4,500. Cost of inventory sold is $3,850. Which of the following journal entries records the effect on merchandise inventory?

After posting the total goods sold on account to the Accounts Receivable account, the accountant places a check mark below the Accounts Receivable column in the sales journal.

Transactions in the sales journal are posted both to the general ledger and the accounts receivable ledger.

Asset, Liability, Owners Equity, Revenue, and Expense Accounts

T Accounts, Debits and Credits, Trial Balance, and Financial Statements

The General Journal and the General Ledger

Adjusting Entries and the Work Sheet

Closing Entries and the Post-Closing Trial Balance

Bank Accounts, Cash Funds, and Internal Controls

Employee Earnings and Deductions

Employer Taxes, Payments, and Reports

Cash Receipts and Cash Payments

Work Sheet and Adjusting Entries

Financial Statements, Closing Entries, and Reversing Entries

Methods of Depreciation

Bad Debts

Inventory Methods

Notes Receivablenotes Payable

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