Question 1

Individual credit customer accounts are kept in the general ledger.

Accepted Answer

A) True 
 B)False

Question 2

Sold merchandise subject to a sales tax,accepting cash.This will be recorded with:

Accepted Answer

A)  a credit to an asset account.
B)  a credit to a liability account.
C)  a debit to Sales.
D)  None of these is correct.E) None of the above
F) A) and B)

Question 3

The total of all cash sales and credit sales equals:

Accepted Answer

A)  net sales.
B)  gross sales.
C)  accounts receivable.
D)  sales returns and allowances.E) B) and C)
F) C) and D)

Question 4

The balance in the Accounts Receivable account is $2,200 debit.Therefore,the balances in the subsidiary ledger should be $2,000.

Accepted Answer

A) True 
 B)False

Question 5

The normal balance of Sales Tax Payable is a credit.

Accepted Answer

A) True 
 B)False

Question 6

For each of the following, identify in column 1 the category to which the account belongs, in column 2 the normal balance for the account, and in column 3 the financial statement on which the account balance is reported.
-$$\begin{array} { | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 \
\hline \text { Sales Discounts } & & & \
\hline
\end{array}$$

Accepted Answer

The answer of For each of the following, identify in...

Question 7

John sold goods for $100 to a charge customer.The customer returned for credit $25 worth of goods.Terms of the sale were 1/10,n/30.If the customer pays the amount owed within the discount period,what is the amount the customer should pay?

Accepted Answer

A)  $74.25
B)  $75.00
C)  $100.00
D)  $90.00E) A) and B)
F) B) and C)

Question 8

Every controlling account must have its own:

Accepted Answer

A)  junior ledger.
B)  general ledger.
C)  subsidiary ledger.
D)  general journal.E) A) and C)
F) B) and C)

Question 9

Plymouth Sharks Hockey Accessories had the following transactions involving the sale of merchandise.You are to prepare the necessary general journal entries.All sales are subject to a 6% sales tax and have a 2/10,n/30 discount terms.
 December 2 $\quad$Sold merchandise priced at $\$ 100$ to Cathy Norton on account.
December 4 $\quad$Sold merchandise priced at $\$ 125$ to a cash customer.
Decem ber 10 $\quad$Payment from Cathy Norton received.
Decem ber 16 $\quad$Cash customer returned $\$ 40$ worth of merchandise.
-Prepare the necessary general journal entry for July 16.Sold merchandise on account with an invoice price of $5,000 to the Taylor Co.
__________________________________________ __________ __________
__________________________________________ __________ __________
__________________________________________ __________ __________

Accepted Answer

The answer of Plymouth Sharks Hockey Accessories had the following...

Question 10

For each of the following, identify in column 1 the category to which the account belongs, in column 2 the normal balance for the account, and in column 3 the financial statement on which the account balance is reported.
-$$\begin{array} { | l | c | c | c | } 
\hline & \text { Column 1 } & \text { Column } 2 & \text { Column } 3 \
\hline \text { Professional Fees Earned } & & & \
\hline
\end{array}$$

Accepted Answer

The answer of For each of the following, identify in...

Question 11

Plymouth Sharks Hockey Accessories had the following transactions involving the sale of merchandise.You are to prepare the necessary general journal entries.All sales are subject to a 6% sales tax and have a 2/10,n/30 discount terms.
 December 2 $\quad$Sold merchandise priced at $\$ 100$ to Cathy Norton on account.
December 4 $\quad$Sold merchandise priced at $\$ 125$ to a cash customer.
Decem ber 10 $\quad$Payment from Cathy Norton received.
Decem ber 16 $\quad$Cash customer returned $\$ 40$ worth of merchandise.
-Prepare the necessary general journal entry for December 2.
__________________________________________ __________ __________
__________________________________________ __________ __________
__________________________________________ __________ __________

Accepted Answer

The answer of Plymouth Sharks Hockey Accessories had the following...

Question 12

Plymouth Sharks Hockey Accessories had the following transactions involving the sale of merchandise.You are to prepare the necessary general journal entries.All sales are subject to a 6% sales tax and have a 2/10,n/30 discount terms.
 December 2 $\quad$Sold merchandise priced at $\$ 100$ to Cathy Norton on account.
December 4 $\quad$Sold merchandise priced at $\$ 125$ to a cash customer.
Decem ber 10 $\quad$Payment from Cathy Norton received.
Decem ber 16 $\quad$Cash customer returned $\$ 40$ worth of merchandise.
-Prepare the necessary general journal entry for April 20.
__________________________________________ __________ __________
__________________________________________ __________ __________
__________________________________________ __________ __________

Accepted Answer

The answer of Plymouth Sharks Hockey Accessories had the following...

Question 13

A characteristic of Sales Returns and Allowances is that:

Accepted Answer

A)  it has a debit balance.
B)  it tracks returns from customers.
C)  it is a contra-revenue account.
D)  All of these answers are correct.E) B) and C)
F) None of the above

Question 14

The controlling account is found in the subsidiary ledger and it summarizes or controls the general ledger account.

Accepted Answer

A) True 
 B)False

Question 15

A contra-revenue account with a debit balance for returned goods is called:

Accepted Answer

A)  Sales Returns and Allowances.
B)  Sales Discount.
C)  the credit period.
D)  the discount period.E) None of the above
F) B) and D)

Question 16

When a customer returns defective office supplies the Sales Returns and Allowances account will be debited.

Accepted Answer

A) True 
 B)False

Question 17

Reduction given to company customers for early payment is a:

Accepted Answer

A)  sales returns and allowance.
B)  purchase discount.
C)  sales discount.
D)  customer discount.E) All of the above
F) B) and C)

Question 18

Sue's Jewelry sold 20 necklaces for $25 each to a credit customer.The invoice included a 6% sales tax and payment terms of 2/10,n/30.In addition,5 necklaces were returned prior to payment.The entry to record the original sale would include:

Accepted Answer

A)  a debit to Accounts Receivable for $530.
B)  a debit to Accounts Receivable for $500.
C)  a debit to Sales for $530.
D)  a debit to Sales for $500.E) C) and D)
F) A) and B)

Question 19

Which of the following statements about subsidiary ledgers is most accurate?

Accepted Answer

A)  The subsidiary ledger accounts will never equal the control account in the general ledger.
B)  The accounts receivable subsidiary ledger is a book of accounts that provides supporting detail for Accounts Receivable.
C)  The subsidiary ledger accounts will equal the amount of cash sales.
D)  All of these answers are correct.E) A) and B)
F) A) and C)

Question 20

Monica's Closet received payment in full within the discount period for goods sold on a $600 sales invoice,terms 2/10,n/30.Which entry records this payment?

Accepted Answer

A)  Debit Accounts Receivable $600;credit Sales $600
B)  Debit Cash $600;credit Accounts Receivable $600
C)  Debit Cash $588,debit Sales Discount $12;credit Sales $600
D)  Debit Cash $588,debit Sales Discount $12;credit Accounts Receivable $600E) A) and B)
F) A) and C)

Exam 9: Sales and Cash Receipts

Individual credit customer accounts are kept in the general ledger.

Correct Answer
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Correct Answer
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The normal balance of Sales Tax Payable is a credit.

Correct Answer
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Sold merchandise subject to a sales tax,accepting cash.This will be recorded with:

Correct Answer
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A characteristic of Sales Returns and Allowances is that:

Correct Answer
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The balance in the Accounts Receivable account is $2,200 debit.Therefore,the balances in the subsidiary ledger should be $2,000.

Correct Answer
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The total of all cash sales and credit sales equals:

Correct Answer
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Every controlling account must have its own:

Correct Answer
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The controlling account is found in the subsidiary ledger and it summarizes or controls the general ledger account.

Correct Answer
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Sue's Jewelry sold 20 necklaces for $25 each to a credit customer.The invoice included a 6% sales tax and payment terms of 2/10,n/30.In addition,5 necklaces were returned prior to payment.The entry to record the original sale would include:

Correct Answer
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Reduction given to company customers for early payment is a:

Correct Answer
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Which of the following statements about subsidiary ledgers is most accurate?

Correct Answer
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Correct Answer
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John sold goods for $100 to a charge customer.The customer returned for credit $25 worth of goods.Terms of the sale were 1/10,n/30.If the customer pays the amount owed within the discount period,what is the amount the customer should pay?

Correct Answer
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A contra-revenue account with a debit balance for returned goods is called:

Correct Answer
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Correct Answer
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Correct Answer
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Monica's Closet received payment in full within the discount period for goods sold on a $600 sales invoice,terms 2/10,n/30.Which entry records this payment?

Correct Answer
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When a customer returns defective office supplies the Sales Returns and Allowances account will be debited.

Correct Answer
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Correct Answer
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Exam 9: Sales and Cash Receipts

Individual credit customer accounts are kept in the general ledger.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The normal balance of Sales Tax Payable is a credit.

Correct AnswerverifiedShow Answer

Sold merchandise subject to a sales tax,accepting cash.This will be recorded with:

Correct AnswerverifiedShow Answer

A characteristic of Sales Returns and Allowances is that:

Correct AnswerverifiedShow Answer

The balance in the Accounts Receivable account is $2,200 debit.Therefore,the balances in the subsidiary ledger should be $2,000.

Correct AnswerverifiedShow Answer

The total of all cash sales and credit sales equals:

Correct AnswerverifiedShow Answer

Every controlling account must have its own:

Correct AnswerverifiedShow Answer

The controlling account is found in the subsidiary ledger and it summarizes or controls the general ledger account.

Correct AnswerverifiedShow Answer

Sue's Jewelry sold 20 necklaces for $25 each to a credit customer.The invoice included a 6% sales tax and payment terms of 2/10,n/30.In addition,5 necklaces were returned prior to payment.The entry to record the original sale would include:

Correct AnswerverifiedShow Answer

Reduction given to company customers for early payment is a:

Correct AnswerverifiedShow Answer

Which of the following statements about subsidiary ledgers is most accurate?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

John sold goods for $100 to a charge customer.The customer returned for credit $25 worth of goods.Terms of the sale were 1/10,n/30.If the customer pays the amount owed within the discount period,what is the amount the customer should pay?

Correct AnswerverifiedShow Answer

A contra-revenue account with a debit balance for returned goods is called:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Monica's Closet received payment in full within the discount period for goods sold on a $600 sales invoice,terms 2/10,n/30.Which entry records this payment?

Correct AnswerverifiedShow Answer

When a customer returns defective office supplies the Sales Returns and Allowances account will be debited.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
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