Exam 6: Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

The Coral Co. had the following transactions involving the sale of merchandise. You are to prepare the necessary general journal entries using the perpetual inventory system. All sales are subject to credit terms of 1/10, n/30. -July 16 Sold merchandise with an invoice price of $3,500 and a cost of $2,000 to Carter and Co. ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________

Cash receipts are recorded in the Sales Journal.

A sales discount correctly taken by the charge customer was debited to Sales at the time the entry was recorded. This error will cause

Credit terms whereby the customer is granted credit until the 10th day of the following month are n/10, EOM.

When using a subsidiary ledger, the Accounts Receivable account in the general ledger is called the

Logan's Art studio was moving and sold furniture that was no longer needed for cash. The entry would include

A record showing the activity and the balances owed by each customer is called the

Compare and discuss a discount period versus a credit period.

Determine the amount to be paid within the discount period for a previous sale with an invoice price of $10,500, subject to credit terms of 1/10, n/30.

Which of the following is NOT a main type of Special Journal?

Refer to the Fruit & Company question. What is the amount debited to Cost of Goods Sold for the month?

Merchants who buy goods at distributor's prices for resale to their customers may be known as

The principal ledger containing all the balance sheet and income statement accounts is the

If a credit memorandum is issued, what account will be decreased on the seller's books?

Customer returns of product in new condition

Entries to customers' accounts for credit sales are posted in the

Every controlling account must have its own

A controlling account is a listing of all the customers and the account balances.

Payment for merchandise sold on credit for $50 subject to 2/10 n/30 was received within the discount period - $49 was received. This was recorded with a debit to Sales Discounts for $1, a debit to Cash for $49, and a credit to Accounts Receivable $50, but no mention was made of the subsidiary ledger account. This error will cause

Terms of 2/10, n/30 means that a customer is allowed a 10% discount in 30 days.