Question 1

A liability account used to record sales tax collected and owed:

Accepted Answer

A)  Sales Tax Expense 
B)  Sales Tax Payable 
C)  Merchandise Tax 
D)  Prepaid Taxes 
A)  Sales Tax Expense 
B)  Sales Tax Payable 
C)  Merchandise Tax 
D)  Prepaid Taxes

Question 2

Merchandising companies include

Accepted Answer

A)  Wholesales 
B)  Retailers 
C)  Both A & B 
D)  Neither A or B 
A)  Wholesales 
B)  Retailers 
C)  Both A & B 
D)  Neither A or B

Question 3

Match the terms below with the correct definitions.
-Special journal used for recording the purchase of merchandise on account only

Accepted Answer

A) FOB destination 
B) Sales Returns and Allowances 
C) Controlling account 
D) Accounts receivable ledger 
E) Subsidiary ledger
F)Purchases journal
G)Sales invoice
H)FOB shipping point
I)General journal 
A) FOB destination 
B) Sales Returns and Allowances 
C) Controlling account 
D) Accounts receivable ledger 
E) Subsidiary ledger
F)Purchases journal
G)Sales invoice
H)FOB shipping point
I)General journal

Question 4

A subsidiary ledger that contains individual accounts of creditors.

Accepted Answer

A)  Purchase Journal 
B)  Accounts Payable Ledger 
C)  Creditor Ledger 
D)  Vendor Ledger 
A)  Purchase Journal 
B)  Accounts Payable Ledger 
C)  Creditor Ledger 
D)  Vendor Ledger

Question 5

A form used by business to inform customers that their account balance has been reduced is:

Accepted Answer

A)  Debit Memorandum 
B)  Credit Memorandum 
C)  Adjustment Memorandum 
D)  Sales Return and Allowance Memo 
A)  Debit Memorandum 
B)  Credit Memorandum 
C)  Adjustment Memorandum 
D)  Sales Return and Allowance Memo

Question 6

Entries in the purchases journal are posted to the

Accepted Answer

A)  general ledger only. 
B)  accounts payable ledger only. 
C)  accounts payable ledger and the purchases ledger. 
D)  general ledger and the accounts payable ledger. 
E)  accounts payable ledger and the accounts receivable ledger. 
A)  general ledger only. 
B)  accounts payable ledger only. 
C)  accounts payable ledger and the purchases ledger. 
D)  general ledger and the accounts payable ledger. 
E)  accounts payable ledger and the accounts receivable ledger.

Question 7

Jane's Animal Haven uses the general journal to record its charge sales invoices instead of a sales journal. The sales tax rate is 4.5 percent on retail item(s).
Instructions:
1.
Record the June 1 balances, if any, in the general ledger as given: Accounts Receivable 113 controlling account, $1,326; Sales Tax Payable 214, Sales 411, $26,852, Sales Returns and Allowances 412. Write "Balance" in the Item column and place a check mark in the Post. Ref. column.
2.
Open the following accounts in the accounts receivable ledger and record the balances, if any, as of June 1: J. Green; G. Haas, $656; S. Soudah; L. Wold. For the account having a balance, write "Balance" in the Item column and place a check mark in the Post. Ref. column.
3.
Record the below transactions in the general journal for the total amount of the charge sales invoices.
4.
Post the amounts from the general journal to the general ledger and accounts receivable ledger. Write the invoice number of each sales invoice in the Post. Ref. column to indicate that the amounts have been posted.
5.
Prepare a schedule of accounts receivable.
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Accepted Answer

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Question 8

Which of the following is recorded in the sales journal?

Accepted Answer

A)  return of merchandise purchased for cash 
B)  sale of merchandise for cash 
C)  sale of merchandise on account 
D)  return of merchandise purchased on account 
E)  purchase of merchandise for cash 
A)  return of merchandise purchased for cash 
B)  sale of merchandise for cash 
C)  sale of merchandise on account 
D)  return of merchandise purchased on account 
E)  purchase of merchandise for cash

Question 9

Jenny purchases goods for $650 on account. She is later issued a credit memorandum to receive credit for the return of $150 of goods. The balance due is _____.

Accepted Answer

A)  $150 
B)  $500 
C)  $650 
D)  $800 
E)  $0 
A)  $150 
B)  $500 
C)  $650 
D)  $800 
E)  $0

Question 10

Black Corporation had the following transactions take place in February of this year:
Instructions:
   
1.Record the transactions in the purchases or general journal, as appropriate.
2.Open the following accounts in the accounts payable ledger and record the February 1 beginning balances, if any, as given: Red Corporation, $300; Yellow, $665. For the accounts having balances write "Balance" in the item column and place a check mark in the Post. Ref. column.
3.Post to the accounts payable ledger and prepare schedule of accounts payable.

Accepted Answer

1.)
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Question 11

Jackson Co. sold merchandise on account to S. Thomas, invoice no. 121, for $125.50, plus 5% sales tax. Which of the following is true about the journal entry to record this transaction?

Accepted Answer

A)  Debit to Sales for $125.50, Credit to Sales Tax Payable for $6.275 
B)  Debit to Sales Tax Payable for $125.50, Credit to Accounts Receivable for $6.275 
C)  Debit to Accounts Receivable for $131.775, Credit to Sales Tax Payable for $6.275 
D)  Debit to Sales Tax Payable for $131.775, Credit to Accounts Receivable for $6.275 
A)  Debit to Sales for $125.50, Credit to Sales Tax Payable for $6.275 
B)  Debit to Sales Tax Payable for $125.50, Credit to Accounts Receivable for $6.275 
C)  Debit to Accounts Receivable for $131.775, Credit to Sales Tax Payable for $6.275 
D)  Debit to Sales Tax Payable for $131.775, Credit to Accounts Receivable for $6.275

Question 12

Some of the goods that were previously sold to a customer on account were returned to the seller, and the seller used a form to show the amount and terms of the return. The source document for the journal entry for this return is called a

Accepted Answer

A)  purchase invoice. 
B)  debit memorandum. 
C)  credit memorandum. 
D)  sales invoice. 
E)  return invoice. 
A)  purchase invoice. 
B)  debit memorandum. 
C)  credit memorandum. 
D)  sales invoice. 
E)  return invoice.

Question 13

When a customer returns goods for credit, the transaction is recorded in the purchases journal.

Accepted Answer

A) True 
 B)False

Question 14

The schedule of accounts receivable shows

Accepted Answer

A)  a list of sales returns for the month. 
B)  total sales for the month. 
C)  a list of individual creditors. 
D)  a list of individual sales. 
E)  a list of the balances of credit customer accounts. 
A)  a list of sales returns for the month. 
B)  total sales for the month. 
C)  a list of individual creditors. 
D)  a list of individual sales. 
E)  a list of the balances of credit customer accounts.

Question 15

A company's written offer to buy goods:

Accepted Answer

A)  Offer for Goods 
B)  Purchase Requisition 
C)  Purchase Order 
D)  Purchase Source Document 
A)  Offer for Goods 
B)  Purchase Requisition 
C)  Purchase Order 
D)  Purchase Source Document

Question 16

Walker Food Stores is a retail store selling goods for cash and on a charge account basis. A retail sales tax of 5 percent is applied to all sales. Selected transactions for the month of January are presented below.
Instructions:
Record the transactions in the sales or general journal, as appropriate.
   ​

Accepted Answer

The answer of Walker Food Stores is a retail store...

Question 17

Freight charges on store equipment purchased FOB shipping point should be debited to Store Equipment.

Accepted Answer

A) True 
 B)False

Question 18

Match the terms below with the correct definitions.
-Account in the general ledger that summarizes the balance of accounts in a subsidiary ledger

Accepted Answer

A) FOB destination 
B) Sales Returns and Allowances 
C) Controlling account 
D) Accounts receivable ledger 
E) Subsidiary ledger
F)Purchases journal
G)Sales invoice
H)FOB shipping point
I)General journal 
A) FOB destination 
B) Sales Returns and Allowances 
C) Controlling account 
D) Accounts receivable ledger 
E) Subsidiary ledger
F)Purchases journal
G)Sales invoice
H)FOB shipping point
I)General journal

Question 19

The account used to record transportation costs of goods purchased for resale is

Accepted Answer

A)  Freight Out. 
B)  Freight In. 
C)  Freight for Cash. 
D)  Transportation Out. 
E)  Transportation Expense. 
A)  Freight Out. 
B)  Freight In. 
C)  Freight for Cash. 
D)  Transportation Out. 
E)  Transportation Expense.

Question 20

Account type and normal balance of the Purchases Account:

Accepted Answer

A)  Asset, DR 
B)  Asset, CR 
C)  Expense, DR 
D)  Expense, CR 
A)  Asset, DR 
B)  Asset, CR 
C)  Expense, DR 
D)  Expense, CR

A liability account used to record sales tax collected and owed:

Merchandising companies include

Match the terms below with the correct definitions. -Special journal used for recording the purchase of merchandise on account only

A subsidiary ledger that contains individual accounts of creditors.

A form used by business to inform customers that their account balance has been reduced is:

Entries in the purchases journal are posted to the

Which of the following is recorded in the sales journal?

Jenny purchases goods for $650 on account. She is later issued a credit memorandum to receive credit for the return of $150 of goods. The balance due is _____.

Jackson Co. sold merchandise on account to S. Thomas, invoice no. 121, for $125.50, plus 5% sales tax. Which of the following is true about the journal entry to record this transaction?

Some of the goods that were previously sold to a customer on account were returned to the seller, and the seller used a form to show the amount and terms of the return. The source document for the journal entry for this return is called a

When a customer returns goods for credit, the transaction is recorded in the purchases journal.

The schedule of accounts receivable shows

A company's written offer to buy goods:

Freight charges on store equipment purchased FOB shipping point should be debited to Store Equipment.

Match the terms below with the correct definitions. -Account in the general ledger that summarizes the balance of accounts in a subsidiary ledger

The account used to record transportation costs of goods purchased for resale is

Account type and normal balance of the Purchases Account:

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

Filters

Exam 9: Sales and Purchases

A liability account used to record sales tax collected and owed:

Merchandising companies include

Match the terms below with the correct definitions. -Special journal used for recording the purchase of merchandise on account only

A subsidiary ledger that contains individual accounts of creditors.

A form used by business to inform customers that their account balance has been reduced is:

Entries in the purchases journal are posted to the

Which of the following is recorded in the sales journal?

Jenny purchases goods for $650 on account. She is later issued a credit memorandum to receive credit for the return of $150 of goods. The balance due is _____.

Jackson Co. sold merchandise on account to S. Thomas, invoice no. 121, for $125.50, plus 5% sales tax. Which of the following is true about the journal entry to record this transaction?

Some of the goods that were previously sold to a customer on account were returned to the seller, and the seller used a form to show the amount and terms of the return. The source document for the journal entry for this return is called a

When a customer returns goods for credit, the transaction is recorded in the purchases journal.

The schedule of accounts receivable shows

A company's written offer to buy goods:

Freight charges on store equipment purchased FOB shipping point should be debited to Store Equipment.

Match the terms below with the correct definitions. -Account in the general ledger that summarizes the balance of accounts in a subsidiary ledger

The account used to record transportation costs of goods purchased for resale is

Account type and normal balance of the Purchases Account:

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

Filters