Question 1

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

The answer of The entry to record a sale of...

Question 2

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

Accepted Answer

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

Question 3

Which of the following describes Sales Returns and Allowances?

Accepted Answer

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

Question 4

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

Accepted Answer

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

Question 5

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

Accepted Answer

Mar.12 - Sold merchandise in the amount

Question 6

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

Question 7

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) 
  
A) 
  
B) 
  
C) 
  
D)

Question 8

The Sales account is classified as a(n)

Accepted Answer

A)  asset account. 
B)  liability account. 
C)  revenue account. 
D)  expense account. 
A)  asset account. 
B)  liability account. 
C)  revenue account. 
D)  expense account.

Question 9

Selected balances from the general ledger of the All Star Video Rentals on July 31,2016,are listed below.Use the appropriate data to prepare the Revenue section of the firm's income statement for the month ended July 31,2016.

Accepted Answer

The answer of Selected balances from the general ledger of...

Question 10

A wholesale firm made sales with a list price of $1,500 and trade discounts of 25 and 15 percent.Calculate the amount the firm will use to record the sale in the sales journal.

Accepted Answer

A)  Invoice price will be equal to $956.25 
B)  Invoice price will be equal to $900 
C)  Invoice price will be equal to $600 
D)  Invoice price will be equal to $543.75 
A)  Invoice price will be equal to $956.25 
B)  Invoice price will be equal to $900 
C)  Invoice price will be equal to $600 
D)  Invoice price will be equal to $543.75

Question 11

Hour Place Clock Shop sold a grandfather clock for $2,250 subject to a 9% sales tax.The entry in the sales journal will include a debit to Accounts Receivable for

Accepted Answer

A)  $2,250.00. 
B)  $2,092.50. 
C)  $2,452.50. 
D)  $2,362.00. 
A)  $2,250.00. 
B)  $2,092.50. 
C)  $2,452.50. 
D)  $2,362.00.

Question 12

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

Accepted Answer

A)  increasing total revenue. 
B)  increasing total expenses. 
C)  decreasing total revenue. 
D)  decreasing total expenses. 
A)  increasing total revenue. 
B)  increasing total expenses. 
C)  decreasing total revenue. 
D)  decreasing total expenses.

Question 13

Bradley's Appliance Store had the following transactions during the month of May 2016.Record the transactions on page 5 of a sales journal and page 8 of a general journal.Total,prove,and rule the sales journal as of May 31.

Accepted Answer

The answer of Bradley's Appliance Store had the following transactions...

Question 14

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

Accepted Answer

The answer of A(n)____________________ business sells goods that it purchases...

Question 15

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

Accepted Answer

The answer of The reductions from list prices that many...

Question 16

Hugh Snow returned merchandise to Farley Co.The entry on the books of Farley company to record the return of merchandise from Hugh Snow would include a:

Accepted Answer

A)  Debit Accounts Payable 
B)  Credit to Purchase Returns and Allowances 
C)  Debit to Account Receivable 
D)  Debit Sales Returns and Allowances 
A)  Debit Accounts Payable 
B)  Credit to Purchase Returns and Allowances 
C)  Debit to Account Receivable 
D)  Debit Sales Returns and Allowances

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)  $4,592 
A)  $4,232 
B)  $4,968 
C)  $4,600 
D)  $4,592

Question 18

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

Question 19

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. 
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.

Question 20

In a firm that uses special journals,the sale of merchandise for cash is recorded in the

Accepted Answer

A)  cash payments journal. 
B)  cash receipts journal. 
C)  sales journal. 
D)  purchases journal. 
A)  cash payments journal. 
B)  cash receipts journal. 
C)  sales journal. 
D)  purchases journal.

Exam 7: Accounting for Sales and Accounts Receivable

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

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

Which of the following describes Sales Returns and Allowances?

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

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

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:

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:

The Sales account is classified as a(n)

Selected balances from the general ledger of the All Star Video Rentals on July 31,2016,are listed below.Use the appropriate data to prepare the Revenue section of the firm's income statement for the month ended July 31,2016.

A wholesale firm made sales with a list price of $1,500 and trade discounts of 25 and 15 percent.Calculate the amount the firm will use to record the sale in the sales journal.

Hour Place Clock Shop sold a grandfather clock for $2,250 subject to a 9% sales tax.The entry in the sales journal will include a debit to Accounts Receivable for

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

Bradley's Appliance Store had the following transactions during the month of May 2016.Record the transactions on page 5 of a sales journal and page 8 of a general journal.Total,prove,and rule the sales journal as of May 31.

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

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

Hugh Snow returned merchandise to Farley Co.The entry on the books of Farley company to record the return of merchandise from Hugh Snow would include a:

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.

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

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

In a firm that uses special journals,the sale of merchandise for cash is recorded in the

Accounting: the Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and the Postclosing Trial Balance

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analyses

The Statement of Cash Flows

Departmentalized Profit and Cost Centers

Accounting for Manufacturing Activities

Job Order Cost Accounting

Process Cost Accounting

Controlling Manufacturing Costs: Standard Costs

Cost-Revenue Analysis for Decision Making

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