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Exam 7: Accounting for Sales and Accounts Receivable

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Question 31

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

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Question 32

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

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Question 33

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A(n)-------- business sells goods that it purchases in finished form for resale.

A retailer gives an allowance to a customer for damaged merchandise. The entry to record the allowance would include

The Sales Returns and Allowances account is presented

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

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. -Gave an allowance for damaged merchandise

If a firm does not have a sales returns and allowances journal, the entries for these transactions are made in

Read the description of following transactions that are required during the accounting period for Mario´s Electronics. Determine the account and amount to be debited and the account and amount to be credited. A. Sold $2,200 in merchandise on credit. The transaction did not involve sales tax. B. Gave a $600 allowance to a credit customer for damaged merchandise. The original sale was subject to 8% sales tax C. Received a check for $200 from a credit customer on account. D. Sold $200 in merchandise for cash. The transaction is subject to 8% sales tax E. Accepted a return of $100 in merchandise from a credit customer. The original sale was subject to 8% sales tax.

In May, a retailer recorded credit sales of $10,000. Assuming the sales tax rate is 7 percent, the entry to record the sales in the sales journal would include:

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

In some states, a firm receives a discount for paying the amount of sales tax due on time.

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

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

Barnett's Electronics Store had the following transactions during the month of January 2019. 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. Jan. 4 Sold a television to Loretta Miller. Issued Sales Slip 101 for $325 plus sales tax of $16.25. 5 Sold a DVD player to Melvin Odom. Issued Sales Slip 102 for $450 plus sales tax of $22.50. 7 Gave Loretta Miller an allowance for scratches on her television sold on January 4, Sales Slip 101. Issued Credit Memorandum 101 for $52.50, which includes $2.50 of sales tax. 14 Sold a telephone system to Ginger Robinson. Issued Sales Slip 103 for $172 plus sales tax of $8.60. 19 Sold a pair of speakers to Richard Simms. Issued Sales Slip 104 for $87 plus sales tax of $4.35. 24 Accepted a return of a pair of defective speakers from Richard Simms. The speakers were originally sold on January 19, Sales Slip 104. Issued Credit Memorandum 102 for $91.35, which includes sales tax of $4.35.

Many retailers accept bank credit cards. Review the statements below and identify the statement that is incorrect regarding bank credit cards.

The Sales account is classified as

A retailer recorded the following in June: cash sales $2,500; credit sales, $11,000; sales returns and allowances, $1,150. Assuming the sales tax rate is 6 percent, the entry to record the sales tax payment includes a debit to Sales Tax Payable for

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. -Purchased merchandise on credit

On the Income Statement, Sales Returns and Allowances have the effect of