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Exam 7: Accounting for Sales and Accounts Receivable

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Question 31

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

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Sept. 8 - Sales return or allowance in t...

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Question 32

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

A) asset.
B) liability.
C) expense.
D) sales recorded net of trade discounts.

E) All of the above
F) A) and B)

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Question 33

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A retailer recorded the following in June: cash sales $2,000; credit sales, $9,000; sales returns and allowances, $1,000. Assuming the sales tax rate is 7 percent, the entry to record the sales tax payment includes a debit to Sales Tax Payable for

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. Round your answers to the nearest dollar. A. List price of $2,300 and trade discount of 40 percent. B. List price of $3,500 and trade discounts of 25 and 15 percent.

The accounts receivable ledger for Acme Auto Parts is shown below. Prepare a schedule of accounts receivable as of March 31, 2013.

The sales journal for Simon Company is shown below. Describe how the amounts would be posted to the accounts receivable subsidiary ledger accounts.

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.

Read the description of following transactions that are required during the accounting period for Drummond Consulting Services. Determine the account to be debited and the account to be credited. A. Sold merchandise on credit. The transaction involved sales tax. B. Accepted a return of merchandise from a credit customer. The original sale involved sales tax. C. Received a check from a credit customer on account. D. Sold merchandise on credit. The transaction did not involve sales tax. E. Gave an allowance to a credit customer for damaged merchandise. The original sale involved sales tax.

In a firm that uses special journals, the issuance of a check to pay a creditor on account is recorded in the

A(n) ____________________ journal is a journal that is used to record only one type of transaction.

Merchandise is sold on credit for $600 plus 5 percent sales tax. The entry in the sales journal will include a debit to Accounts Receivable for

A list of all unpaid balances in the accounts receivable subsidiary ledger is called a(n) ____________________ of accounts receivable.

In a firm that uses special journals, the collection of sums on account from credit customers is recorded in the

In a firm that uses special journals, an additional cash investment received from the owner is recorded in the

A ledger that contains accounts of a single type is called a(n) ____________________ ledger.

The reductions from list prices that many wholesale businesses offer their customers are called ____________________ discounts.

Which of the following statements is not correct?

The amount used by wholesalers to record sales in its sales journal is

To indicate that the column totals of the sales journal have been posted, a check mark is entered under the column total.

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