Question 1

The Sales Returns and Allowances account has a normal ________ balance.

Accepted Answer

The answer of The Sales Returns and Allowances account has...

Question 2

The abbreviation S1 in the Posting Reference column of an account shows that the data was posted from page 1 of the sales journal.

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 accounts receivable subsidiary ledger.
C)  the Accounts Receivable account in the general ledger.
D)  the Sales account in the general ledger.

Question 4

A sales return or a sales allowance is usually recorded in the sales journal.

Accepted Answer

A) True 
 B)False

Question 5

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 6

Which of the following describes Sales Returns and Allowances?

Accepted Answer

A)  A revenue account with a normal credit balance.
B)  A contra revenue account with a normal debit balance.
C)  A contra expense account with a normal credit balance.
D)  An expense account with a normal debit balance.

Question 7

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 8

GiGi's Sporting Goods uses special journals. If a credit customer returns $400 of goods on which
$24 of sales tax was charged, the journal entry to record the return would include:

Accepted Answer

A)  a credit to the Sales Tax Payable account for $24.
B)  a debit to the Sales Returns and Allowances account for $424.
C)  a credit to the Accounts Receivable account for $424.
D)  a debit to the Sales account for $400.

Question 9

When an accounts receivable subsidiary ledger is used, the Accounts Receivable account in the general ledger is considered to be a(n)________ account.

Accepted Answer

The answer of When an accounts receivable subsidiary ledger is...

Question 10

ABC Skiing Essentials uses special journals. If a credit customer returns $8,000 of goods on which
$560 of sales tax was charged, select the correct entry to record the return:

Accepted Answer

A)  
B)  
C)  
D)

Question 11

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

Accepted Answer

A)  the retail price.
B)  the net price.
C)  the list price.
D)  the original price.

Question 12

Which of the following statements is not correct?

Accepted Answer

A)  When special journals are used, postings to the accounts receivable account in the general ledger are usually made once a month on the last day of the month.
B)  Before any posting to the subsidiary ledger takes place, the equality of the debits and credits recorded in the sales journal are proved by comparing and cross footing the column totals.
C)  Before any posting to the general ledger takes place, the equality of the debits and credits recorded in the sales journal are proved by comparing and cross footing the column totals.
D)  Postings to the accounts receivable subsidiary ledger are usually made once a month on the last day of the month.

Question 13

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.
-Accepted a return of merchandise from a credit customer

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.

Question 14

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.
-Sold merchandise for cash

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.

Question 15

A wholesale business sells goods with a list price of $1,200 and a trade discount of 30 percent. The amount credited to the Sales account for the sale is

Accepted Answer

A)  $765.00
B)  $840.00
C)  $360.00
D)  $1,560.00

Question 16

A wholesale business sells goods with a list price of $1,200 and a trade discount of 30 percent. The net price is

Accepted Answer

A)  $1,560.
B)  $360.
C)  $840.
D)  $1,200.

Question 17

Kay Sadia sold merchandise for $15,200 subject to a 7% sales tax. The entry in the sales journal will include a debit to Accounts Receivable for

Accepted Answer

A)  $14,136.00
B)  $12,664.00
C)  $16,264.00
D)  $15,200.00

Question 18

Which of the following statements is correct?

Accepted Answer

A)  To provide an adequate audit trail, sales on credit should be recorded in both the sales journal and the general journal.
B)  The complete information for each sale of merchandise on credit can be recorded on one line of the general journal.
C)  The sales journal is used for recording both cash sales and credit sales.
D)  Since the sales journal is used for a single purpose, there is no need to enter any descriptions.

Question 19

Sales Tax Payable is classified as a(n)________ account.

Accepted Answer

The answer of Sales Tax Payable is classified as a(n)________...

Question 20

JCPenney issues its own credit cards to its customers who have established credit with them. It's customers used these cards to charge $300 worth of sales. There is no sales tax associated with the sales. JCPenney would record these sales by:

Accepted Answer

A)  debiting Accounts Receivable $300 and crediting Sales $300.
B)  debiting Charge Card Sales $300 and crediting Sales Returns and Allowances $300.
C)  debiting Cash $300 and crediting Sales $300.
D)  debiting Sales $300 and crediting Accounts Receivable $300.

Exam 7: Accounting for Sales and Accounts Receivable

A sales return or a sales allowance is usually recorded in the sales journal.

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. -Sold merchandise for cash

Correct Answer
verified

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

Sales Tax Payable is classified as a(n)________ account.

Correct Answer
verified

The abbreviation S1 in the Posting Reference column of an account shows that the data was posted from page 1 of the sales journal.

Correct Answer
verified

A wholesale business sells goods with a list price of $1,200 and a trade discount of 30 percent. The net price is

Correct Answer
verified

ABC Skiing Essentials uses special journals. If a credit customer returns $8,000 of goods on which $560 of sales tax was charged, select the correct entry to record the return:

Correct Answer
verified

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

Correct Answer
verified

Which of the following describes Sales Returns and Allowances?

Correct Answer
verified

Which of the following statements is correct?

Correct Answer
verified

GiGi's Sporting Goods uses special journals. If a credit customer returns $400 of goods on which $24 of sales tax was charged, the journal entry to record the return would include:

Correct Answer
verified

Which of the following statements is not correct?

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

Correct Answer
verified

The Sales Returns and Allowances account has a normal ________ balance.

Correct Answer
verified

A wholesale business sells goods with a list price of $1,200 and a trade discount of 30 percent. The amount credited to the Sales account for the sale is

Correct Answer
verified

Kay Sadia sold merchandise for $15,200 subject to a 7% sales tax. The entry in the sales journal will include a debit to Accounts Receivable for

Correct Answer
verified

JCPenney issues its own credit cards to its customers who have established credit with them. It's customers used these cards to charge $300 worth of sales. There is no sales tax associated with the sales. JCPenney would record these sales by:

Correct Answer
verified

When an accounts receivable subsidiary ledger is used, the Accounts Receivable account in the general ledger is considered to be a(n)________ account.

Correct Answer
verified

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

Correct Answer
verified

Exam 7: Accounting for Sales and Accounts Receivable

A sales return or a sales allowance is usually recorded in the sales journal.

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. -Sold merchandise for cash

Correct AnswerverifiedShow Answer

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

Sales Tax Payable is classified as a(n)________ account.

Correct AnswerverifiedShow Answer

The abbreviation S1 in the Posting Reference column of an account shows that the data was posted from page 1 of the sales journal.

Correct AnswerverifiedShow Answer

A wholesale business sells goods with a list price of $1,200 and a trade discount of 30 percent. The net price is

Correct AnswerverifiedShow Answer

ABC Skiing Essentials uses special journals. If a credit customer returns $8,000 of goods on which $560 of sales tax was charged, select the correct entry to record the return:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following describes Sales Returns and Allowances?

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

GiGi's Sporting Goods uses special journals. If a credit customer returns $400 of goods on which $24 of sales tax was charged, the journal entry to record the return would include:

Correct AnswerverifiedShow Answer

Which of the following statements is not correct?

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

Correct AnswerverifiedShow Answer

The Sales Returns and Allowances account has a normal ________ balance.

Correct AnswerverifiedShow Answer

A wholesale business sells goods with a list price of $1,200 and a trade discount of 30 percent. The amount credited to the Sales account for the sale is

Correct AnswerverifiedShow Answer

Kay Sadia sold merchandise for $15,200 subject to a 7% sales tax. The entry in the sales journal will include a debit to Accounts Receivable for

Correct AnswerverifiedShow Answer

JCPenney issues its own credit cards to its customers who have established credit with them. It's customers used these cards to charge $300 worth of sales. There is no sales tax associated with the sales. JCPenney would record these sales by:

Correct AnswerverifiedShow Answer

When an accounts receivable subsidiary ledger is used, the Accounts Receivable account in the general ledger is considered to be a(n)________ account.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct Answer
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