Exam 7: Accounting for Sales and Accounts Receivable

In a firm that uses special journals,a sale of merchandise on credit is recorded in the

The Sales account is classified as

The balance of the Sales Returns and Allowances account is subtracted from the balance of the Accounts Receivable account in the Assets section of the balance sheet.

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.

Which of the following statements is correct?

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.

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

After all postings have been made,the total of the schedule of accounts receivable should equal

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

Which of the following describes Sales Tax Payable?

ABC Company uses special journals.When making a credit sale of $700 to a customer,the company would record the sale by:

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

Kay Sadia sold merchandise for $8,750 subject to a 6% sales tax.The entry in the sales journal will include a debit to Accounts Receivable for

All That Jazz Music Store had the following transactions during the month of August 2016.Record the transactions on page 15 of a sales journal and page 18 of a general journal.Total,prove,and rule the sales journal as of August 31.

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

The Sales Returns and Allowances account is classified as