Question 1

Which of the following statements is not correct?

Accepted Answer

A)  The sales slip is the source document for sales on credit transactions.
B)  A journal that is used to record only one type of a transaction is called a special journal.
C)  Use of a sales journal eliminates repetition in posting individual entries to the Accounts Receivable account in the general ledger.
D)  If the firm must collect sales tax on retail transactions, the sales journal should have a Sales Tax Payable Debit column.E) All of the above
F) B) and C)

Question 2

The Sales account is classified as a(n)

Accepted Answer

A)  liability account.
B)  asset account.
C)  expense account.
D)  revenue account.E) A) and B)
F) A) and C)

Question 3

Hour Place Clock Shop sold a grandfather clock for $2,250 subject to a 9% sales tax. The entry in the sales journal will include a debit to Accounts Receivable for

Accepted Answer

A)  $2,452.50.
B)  $2,250.00.
C)  $2,092.50.
D)  $2,362.00.E) B) and C)
F) B) and D)

Question 4

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

Accepted Answer

A)  sales journal.
B)  cash payments journal.
C)  cash receipts journal.
D)  purchases journal.E) A) and D)
F) None of the above

Question 5

One of the customer accounts from the accounts receivable ledger for Paragon Consulting Services is shown below. Explain each of the entries that have been posted to this customer's subsidiary ledger account.

Accepted Answer

Mar. 12 - Sold merchandise in the amount...

Question 6

For each of the transactions listed below, select the journal that should be used to record the transaction. Use CR for cash receipts journal, CP for cash payments journal, S for sales journal, P for purchases journal, and G for general journal.
-Issued a check to pay a creditor on account

Accepted Answer

A)  CR for cash receipts journal
B)  CP for cash payments journal
C)  S for sales journal
D)  P for purchases journal
E)  G for general journal.F) All of the above
G) D) and E)

Question 7

After all postings have been made, the totals of the balances in the accounts receivable subsidiary ledger should equal the balance of the Accounts Receivable account in the general ledger.

Accepted Answer

A) True 
 B)False

Question 8

Match between columns
                        Premises: A firm's acceptance of a return of goods from a customer
An account that links a subsidiary ledger and the general ledger since its balance summarizes the balances of the accounts in the subsidiary ledger
The list price less all trade discounts
Sales made through the use of open-account credit or one of various types of credit cards
A business that sells goods that it has produced
A listing of all balances of the accounts in the accounts receivable subsidiary ledger
A journal used to record only one type of transaction
A subsidiary ledger that contains credit customer accounts
The difference between the balance in the Sales account and the balance in the Sales Returns and Allowances account
A business that sells services
A ledger dedicated to accounts of a single type and showing details to support a general ledger account
A special journal used to record sales of merchandise on credit
An account with a debit balance, which is contrary to the normal balance for a revenue account
A customer billing for merchandise bought on credit
A business that sells goods purchased for resale
A reduction in the price originally charged to customers for goods or services
A reduction from list price
An established retail price
A note verifying that a customer's account is being reduced by the amount of a sales return or sales allowance plus any sales tax that may have been involved
A business that manufactures or distributes goods to retail businesses or large consumers such as hotels and hospitals
A system that allows the sale of services or goods with the understanding that payment will be made at a later date
A business that sells directly to individual consumers
The stock of goods a merchandising business keeps on hand

Accepted Answer

The Answer of Merchandising business and Charge-account sales and Control is...

Question 9

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

Accepted Answer

A)  cash payments journal.
B)  cash receipts journal.
C)  purchases journal.
D)  sales journal.E) None of the above
F) All of the above

Question 10

Ables Budget Boutique uses special journals. If a credit customer returns $40 of goods on which $3 of sales tax was charged, identify the statement below that would be correct when posting the transaction.

Accepted Answer

A)  A credit of $40 would be posted to the customer's account in the accounts receivable ledger.
B)  A debit of $43 would be posted to the customer's account in the accounts receivable ledger.
C)  A credit of $43 would be posted to the customer's account in the accounts receivable ledger.
D)  A debit of $40 would be posted to the customer's account in the accounts receivable ledger.E) None of the above
F) All of the above

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 payments journal.
B)  sales journal.
C)  general journal.
D)  cash receipts journal.E) A) and D)
F) All of the above

Question 13

The individual amounts in the Accounts Receivable Debit column of a sales journal should be posted to the accounts receivable subsidiary ledger, and the column total should be posted to the Accounts Receivable account in the general ledger.

Accepted Answer

A) True 
 B)False

Question 14

Merchandise is sold on credit for $900 plus 5 percent sales tax. The entry in the sales journal will include a debit to Accounts Receivable for

Accepted Answer

A)  $905.00.
B)  $945.00.
C)  $904.50.
D)  $900.00.E) All of the above
F) C) and D)

Question 15

If a firm had sales of $68,000 during a period and sales returns and allowances of $5,600, its net sales were

Accepted Answer

A)  $5,600.
B)  $73,600.
C)  $68,000.
D)  $62,400.E) C) and D)
F) A) and D)

Question 16

A cash customer purchased $3,000 of merchandise on which sales tax of 7% was charged. The customer subsequently returned $500 of the merchandise for a refund. The amount of the cash refund is

Accepted Answer

A)  $500.00
B)  $35.00
C)  $535.00
D)  $210.00E) A) and B)
F) All of the above

Question 17

The amount of the trade discount taken by the customer is recorded as a(n)

Accepted Answer

A)  liability.
B)  asset.
C)  reduction to the amount recorded as a sale.
D)  expense.E) None of the above
F) B) and C)

Question 18

For each of the transactions listed below, select the journal that should be used to record the transaction. Use CR for cash receipts journal, CP for cash payments journal, S for sales journal, P for purchases journal, and G for general journal.
-Collected sums on account from credit customers

Accepted Answer

A)  CR for cash receipts journal
B)  CP for cash payments journal
C)  S for sales journal
D)  P for purchases journal
E)  G for general journal.F) None of the above
G) All of the above

Question 19

The quantity of goods kept on hand to sell to consumers is called ________.

Accepted Answer

merchandis...

Question 20

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

Accepted Answer

A)  the total of the Sales column.
B)  the total of the Sales Tax Payable column.
C)  the sum of the totals of the Sales Tax Payable column and the Sales column.
D)  the difference between the total of the Sales Tax Payable column and the total of the Sales column.E) A) and B)
F) None of the above

Exam 7: Accounting for Sales and Accounts Receivable

The quantity of goods kept on hand to sell to consumers is called ________.

Correct Answer
verified
merchandis...
View Answer

The individual amounts in the Accounts Receivable Debit column of a sales journal should be posted to the accounts receivable subsidiary ledger, and the column total should be posted to the Accounts Receivable account in the general ledger.

Correct Answer
verified

Match the description with the accounting terms.

For each of the transactions listed below, select the journal that should be used to record the transaction. Use CR for cash receipts journal, CP for cash payments journal, S for sales journal, P for purchases journal, and G for general journal. -Collected sums on account from credit customers

Correct Answer
verified

One of the customer accounts from the accounts receivable ledger for Paragon Consulting Services is shown below. Explain each of the entries that have been posted to this customer's subsidiary ledger account.

Correct Answer
verified
Mar. 12 - Sold merchandise in the amount...
View Answer

Ables Budget Boutique uses special journals. If a credit customer returns $40 of goods on which $3 of sales tax was charged, identify the statement below that would be correct when posting the transaction.

Correct Answer
verified

For each of the transactions listed below, select the journal that should be used to record the transaction. Use CR for cash receipts journal, CP for cash payments journal, S for sales journal, P for purchases journal, and G for general journal. -Issued a check to pay a creditor on account

Correct Answer
verified

A cash customer purchased $3,000 of merchandise on which sales tax of 7% was charged. The customer subsequently returned $500 of the merchandise for a refund. The amount of the cash refund is

Correct Answer
verified

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

Correct Answer
verified

If a firm had sales of $68,000 during a period and sales returns and allowances of $5,600, its net sales were

Correct Answer
verified

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

Correct Answer
verified

Which of the following statements is not correct?

Correct Answer
verified

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

Correct Answer
verified

The Sales account is classified as a(n)

Correct Answer
verified

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

Correct Answer
verified

After all postings have been made, the totals of the balances in the accounts receivable subsidiary ledger should equal the balance of the Accounts Receivable account in the general ledger.

Correct Answer
verified

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

Correct Answer
verified

Merchandise is sold on credit for $900 plus 5 percent sales tax. The entry in the sales journal will include a debit to Accounts Receivable for

Correct Answer
verified

Hour Place Clock Shop sold a grandfather clock for $2,250 subject to a 9% sales tax. The entry in the sales journal will include a debit to Accounts Receivable for

Correct Answer
verified

The amount of the trade discount taken by the customer is recorded as a(n)

Correct Answer
verified

Exam 7: Accounting for Sales and Accounts Receivable

The quantity of goods kept on hand to sell to consumers is called ________.

Correct Answerverifiedmerchandis...View AnswerShow Answer

The individual amounts in the Accounts Receivable Debit column of a sales journal should be posted to the accounts receivable subsidiary ledger, and the column total should be posted to the Accounts Receivable account in the general ledger.

Correct AnswerverifiedShow Answer

Match the description with the accounting terms.

For each of the transactions listed below, select the journal that should be used to record the transaction. Use CR for cash receipts journal, CP for cash payments journal, S for sales journal, P for purchases journal, and G for general journal. -Collected sums on account from credit customers

Correct AnswerverifiedShow Answer

One of the customer accounts from the accounts receivable ledger for Paragon Consulting Services is shown below. Explain each of the entries that have been posted to this customer's subsidiary ledger account.

Correct AnswerverifiedMar. 12 - Sold merchandise in the amount...View AnswerShow Answer

Ables Budget Boutique uses special journals. If a credit customer returns $40 of goods on which $3 of sales tax was charged, identify the statement below that would be correct when posting the transaction.

Correct AnswerverifiedShow Answer

For each of the transactions listed below, select the journal that should be used to record the transaction. Use CR for cash receipts journal, CP for cash payments journal, S for sales journal, P for purchases journal, and G for general journal. -Issued a check to pay a creditor on account

Correct AnswerverifiedShow Answer

A cash customer purchased $3,000 of merchandise on which sales tax of 7% was charged. The customer subsequently returned $500 of the merchandise for a refund. The amount of the cash refund is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If a firm had sales of $68,000 during a period and sales returns and allowances of $5,600, its net sales were

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The Sales account is classified as a(n)

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

After all postings have been made, the totals of the balances in the accounts receivable subsidiary ledger should equal the balance of the Accounts Receivable account in the general ledger.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Merchandise is sold on credit for $900 plus 5 percent sales tax. The entry in the sales journal will include a debit to Accounts Receivable for

Correct AnswerverifiedShow Answer

Hour Place Clock Shop sold a grandfather clock for $2,250 subject to a 9% sales tax. The entry in the sales journal will include a debit to Accounts Receivable for

Correct AnswerverifiedShow Answer

The amount of the trade discount taken by the customer is recorded as a(n)

Correct AnswerverifiedShow Answer

Correct Answer
verified
merchandis...
View Answer

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Mar. 12 - Sold merchandise in the amount...
View Answer

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