Question 1

A wholesale firm made sales with the following list prices and trade discounts. Calculate the amount the firm will use to record each sale in the sales journal. Show your calculation.
A. List price of $900 and trade discount of 45 percent.
B. List price of $500 and trade discount of 35 percent.
C. List Price of $1,600 and trade discounts of 25 and 15 percent.

Accepted Answer

A. $900 - $405 = $49...

Question 2

A wholesale business does not need a Sales Tax Payable account.

Accepted Answer

A) True 
 B)False

Question 3

To find the balance due from an individual customer, the accountant would refer to

Accepted Answer

A)   the sales journal.
B)   the Sales account in the general ledger.
C)   the accounts receivable subsidiary ledger.
D)   the Accounts Receivable account in the general ledger.E) B) and C)
F) C) and D)

Question 4

If a firm had sales of $50,000 during a period and sales returns and allowances of $4,000, its net sales were

Accepted Answer

A)   $54,000.
B)   $50,000.
C)   $46,000.
D)   $4,000.E) B) and C)
F) None of the above

Question 5

The entry to record a return by a credit customer of defective merchandise on which no sales tax was charged includes

Accepted Answer

A)   a debit to Sales and a credit to Accounts Receivable.
B)   a debit to Sales and a credit to Sales Returns and Allowances.
C)   a debit to Sales Returns and Allowances and a credit to Accounts Receivable.
D)   a debit to Accounts Receivable and a credit to Sales Returns and Allowances.E) All of the above
F) C) and D)

Question 6

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

Accepted Answer

A)   the sum of the totals of the Sales Tax Payable column and the Sales column.
B)   the difference between the total of the Sales Tax Payable column and the total of the Sales column.
C)   the total of the Sales column.
D)   the total of the Sales Tax Payable column.E) B) and C)
F) All of the above

Question 7

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)   sales journal.
D)   purchases journal.E) A) and C)
F) A) and B)

Question 8

The balance of the Sales Returns and Allowances account is subtracted from the balance of the Accounts Receivable account in the Assets section of the balance sheet.

Accepted Answer

A) True 
 B)False

Question 9

A firm that sells goods that it purchases for re-sale is a

Accepted Answer

A)   service business.
B)   merchandising business.
C)   manufacturing business.
D)   non-profit business.E) A) and C)
F) A) and B)

Question 10

The Sales account is classified as

Accepted Answer

A)   a liability account.
B)   an asset account.
C)   a contra account.
D)   a revenue account.E) A) and C)
F) B) and C)

Question 11

The stock of goods kept on hand to sell to consumers is called _________________________.

Accepted Answer

merchandis...

Question 12

The balance of a customer's account in the accounts receivable ledger is circled to show that it is a debit amount.

Accepted Answer

A) True 
 B)False

Question 13

To indicate that an amount has been posted from the sales journal to the accounts receivable subsidiary ledger, a(n) ____________________ is placed in the Posting Reference column of the journal.

Accepted Answer

The answer of To indicate that an amount has been...

Question 14

The entry to record a sale of merchandise on credit that is subject to sales tax includes a(n) ____________________ to Sales Tax Payable.

Accepted Answer

credit

Question 15

After all postings have been made, the total of the schedule of accounts receivable should equal

Accepted Answer

A)   the balance of the Sales account.
B)   the total of the Accounts Receivable Debit column in the sales journal.
C)   the balance of the Accounts Receivable account in the general ledger.
D)   the total of all sales on account for the accounting period.E) All of the above
F) C) and D) C

Question 16

A(n) ____________________ is a business form that is issued to a credit customer upon acceptance of the return of damaged goods.

Accepted Answer

The answer of A(n) ____________________ is a business form that...

Question 17

On Deck Sports Memorabilia store sells a Babe Ruth rookie card for $4,600 on account. If the sales tax on the sale is 8%, what is the amount debited to Accounts Receivable?

Accepted Answer

A)   $4,232
B)   $4,968
C)   $4,600
D)   $4,592E) A) and C)
F) All of the above

Question 18

Which of the following describes Sales Tax Payable?

Accepted Answer

A)   A revenue account with a normal credit balance.
B)   A liability account with a normal debit balance.
C)   A liability account with a normal credit balance.
D)   An asset account with a normal debit balance.E) B) and C)
F) B) and D)

Question 19

Barnett's Electronics Store had the following transactions during the month of January 2013. Record the transactions on page 1 of a sales journal and page 1 of a general journal. Total, prove, and rule the sales journal as of January 31.

Accepted Answer

The answer of Barnett's Electronics Store had the following transactions...

Question 20

The Sales Returns and Allowances account is classified as

Accepted Answer

A)   an asset account.
B)   a contra asset account.
C)   an expense account.
D)   a contra revenue account.E) B) and C)
F) B) and D)

Exam 7: Accounting for Sales and Accounts Receivable

Correct Answer
verified
A. $900 - $405 = $49...
View Answer

A wholesale business does not need a Sales Tax Payable account.

Correct Answer
verified

To find the balance due from an individual customer, the accountant would refer to

Correct Answer
verified

If a firm had sales of $50,000 during a period and sales returns and allowances of $4,000, its net sales were

Correct Answer
verified

The entry to record a return by a credit customer of defective merchandise on which no sales tax was charged includes

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

The balance of the Sales Returns and Allowances account is subtracted from the balance of the Accounts Receivable account in the Assets section of the balance sheet.

Correct Answer
verified

A firm that sells goods that it purchases for re-sale is a

Correct Answer
verified

The Sales account is classified as

Correct Answer
verified

The stock of goods kept on hand to sell to consumers is called _________________________.

Correct Answer
verified
merchandis...
View Answer

The balance of a customer's account in the accounts receivable ledger is circled to show that it is a debit amount.

Correct Answer
verified

To indicate that an amount has been posted from the sales journal to the accounts receivable subsidiary ledger, a(n) ____________________ is placed in the Posting Reference column of the journal.

Correct Answer
verified

The entry to record a sale of merchandise on credit that is subject to sales tax includes a(n) ____________________ to Sales Tax Payable.

Correct Answer
verified
credit

After all postings have been made, the total of the schedule of accounts receivable should equal

Correct Answer
verified
C

A(n) ____________________ is a business form that is issued to a credit customer upon acceptance of the return of damaged goods.

Correct Answer
verified

On Deck Sports Memorabilia store sells a Babe Ruth rookie card for $4,600 on account. If the sales tax on the sale is 8%, what is the amount debited to Accounts Receivable?

Correct Answer
verified

Which of the following describes Sales Tax Payable?

Correct Answer
verified

Barnett's Electronics Store had the following transactions during the month of January 2013. Record the transactions on page 1 of a sales journal and page 1 of a general journal. Total, prove, and rule the sales journal as of January 31.

Correct Answer
verified
11eaa015_2b81_1abc_8ab9_85e14d0abe35_TB5410_00 11eaa015_2b81_1abd_8ab9_e1b01e344c6a_TB5410_00

The Sales Returns and Allowances account is classified as

Correct Answer
verified

Exam 7: Accounting for Sales and Accounts Receivable

Correct AnswerverifiedA. $900 - $405 = $49...View AnswerShow Answer

A wholesale business does not need a Sales Tax Payable account.

Correct AnswerverifiedShow Answer

To find the balance due from an individual customer, the accountant would refer to

Correct AnswerverifiedShow Answer

If a firm had sales of $50,000 during a period and sales returns and allowances of $4,000, its net sales were

Correct AnswerverifiedShow Answer

The entry to record a return by a credit customer of defective merchandise on which no sales tax was charged includes

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The balance of the Sales Returns and Allowances account is subtracted from the balance of the Accounts Receivable account in the Assets section of the balance sheet.

Correct AnswerverifiedShow Answer

A firm that sells goods that it purchases for re-sale is a

Correct AnswerverifiedShow Answer

The Sales account is classified as

Correct AnswerverifiedShow Answer

The stock of goods kept on hand to sell to consumers is called _________________________.

Correct Answerverifiedmerchandis...View AnswerShow Answer

The balance of a customer's account in the accounts receivable ledger is circled to show that it is a debit amount.

Correct AnswerverifiedShow Answer

To indicate that an amount has been posted from the sales journal to the accounts receivable subsidiary ledger, a(n) ____________________ is placed in the Posting Reference column of the journal.

Correct AnswerverifiedShow Answer

The entry to record a sale of merchandise on credit that is subject to sales tax includes a(n) ____________________ to Sales Tax Payable.

Correct Answerverifiedcredit

After all postings have been made, the total of the schedule of accounts receivable should equal

Correct AnswerverifiedC

A(n) ____________________ is a business form that is issued to a credit customer upon acceptance of the return of damaged goods.

Correct AnswerverifiedShow Answer

On Deck Sports Memorabilia store sells a Babe Ruth rookie card for $4,600 on account. If the sales tax on the sale is 8%, what is the amount debited to Accounts Receivable?

Correct AnswerverifiedShow Answer

Which of the following describes Sales Tax Payable?

Correct AnswerverifiedShow Answer

Barnett's Electronics Store had the following transactions during the month of January 2013. Record the transactions on page 1 of a sales journal and page 1 of a general journal. Total, prove, and rule the sales journal as of January 31.

Correct Answerverified11eaa015_2b81_1abc_8ab9_85e14d0abe35_TB5410_00 11eaa015_2b81_1abd_8ab9_e1b01e344c6a_TB5410_00

The Sales Returns and Allowances account is classified as

Correct AnswerverifiedShow Answer

Correct Answer
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A. $900 - $405 = $49...
View Answer

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merchandis...
View Answer

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credit

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C

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11eaa015_2b81_1abc_8ab9_85e14d0abe35_TB5410_00 11eaa015_2b81_1abd_8ab9_e1b01e344c6a_TB5410_00

Correct Answer
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