Exam 7: Accounting for Sales and Accounts Receivable

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 merchandising business sells goods that it produces.

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

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

Which of the following statements is not correct?

An example of a merchandising company is a

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:

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

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

The individual amounts in the Accounts Receivable Debit column of a sales journal should be posted to the accounts receivable subsidiary ledger,and the column total should be posted to the Accounts Receivable account in the general ledger.

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

The accounts receivable ledger for Acme Auto Parts is shown below.Prepare a schedule of accounts receivable as of March 31,2016.

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.

When a business makes a sale on a bank credit card,the business is ultimately responsible for collecting the amount owed from the customer.

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.JCPenney would record these sales by:

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

In a firm that uses special journals,the acceptance of a return of merchandise from a credit customer is recorded in the

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

In a firm that uses special journals,an allowance given for damaged merchandise is recorded in the

Which of the following statements is not correct?