Question 1

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.

Accepted Answer

Sept.8 - Sales return or allowance in th...

Question 2

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.

Accepted Answer

A) True 
 B)False

Question 3

A merchandising business sells goods that it produces.

Accepted Answer

A) True 
 B)False  False

Question 4

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

Accepted Answer

A)   the sales journal.
B)   the general journal.
C)   the cash receipts journal.
D)   the cash payments journal.E) None of the above
F) B) and C)

Question 5

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

Accepted Answer

A)   cash payments journal.
B)   cash receipts journal.
C)   purchases journal.
D)   general journal.E) A) and B)
F) B) and D)

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

schedule

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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:

Accepted Answer

A)   a debit to Accounts Receivable of $10,700.
B)   a debit to Accounts Receivable of $10,000.
C)   a credit to Sales of $10,700.
D)   a debit to Sales Tax Payable of $700.E) A) and D)
F) B) and D)

Question 10

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

Accepted Answer

A)   $600.00.
B)   $603.50.
C)   $605.50.
D)   $630.00.E) All of the above
F) None of the above D

Question 11

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

Accepted Answer

A)   cash receipts journal.
B)   sales journal.
C)   cash payments journal.
D)   general journal.E) C) and D)
F) A) and D)

Question 12

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:

Accepted Answer

A)   debiting Cash $300 and crediting Sales $300.
B)   debiting Sales $300 and crediting Accounts Receivable $300.
C)   debiting Charge Card Sales $300 and crediting Sales Returns and Allowances $300.
D)   debiting Accounts Receivable $300 and crediting Sales $300.E) B) and C)
F) None of the above

Question 13

Which of the following statements is not correct?

Accepted Answer

A)   Postings to the accounts receivable subsidiary ledger are usually made once a month on the last day of the month.
B)   Before any posting to the subsidiary ledger takes place,the equality of the debits and credits recorded in the sales journal are proved by comparing the column totals.
C)   Before any posting to the general ledger takes place,the equality of the debits and credits recorded in the sales journal are proved by comparing the column totals.
D)   When special journals are used,postings to the accounts receivable account in the general ledger are usually made once a month on the last day of the month.E) A) and B)
F) A) and C)

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

The answer of A ledger that contains accounts of a...

Question 16

Which of the following statements is not correct?

Accepted Answer

A)   Use of a sales journal eliminates repetition in posting individual entries to the Accounts Receivable account in the general ledger.
B)   A journal that is used to record only one type of a transaction is called a special journal.
C)   The sales slip is the source document for sales on credit transactions.
D)   If the firm must collect sales tax on retail transactions,the sales journal should have a Sales Tax Payable Debit column.E) A) and B)
F) None of the above

Question 17

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

Accepted Answer

The answer of The Sales Returns and Allowances account has...

Question 18

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

Accepted Answer

The answer of The accounts receivable ledger for Acme Auto...

Question 19

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

Accepted Answer

The answer of A(n)____________________ journal is a journal that is...

Question 20

An example of a merchandising company is a

Accepted Answer

A)   bookstore.
B)   restaurant.
C)   hair salon.
D)   real estate office.E) None of the above
F) B) and D)

Exam 7: Accounting for Sales and Accounts Receivable

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.

Correct AnswerverifiedSept.8 - Sales return or allowance in th...View AnswerShow Answer

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.

Correct AnswerverifiedShow Answer

A merchandising business sells goods that it produces.

Correct AnswerverifiedFalse

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct Answerverifiedschedule

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

Correct AnswerverifiedShow Answer

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:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedD

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

Correct AnswerverifiedShow Answer

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:

Correct AnswerverifiedShow Answer

Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An example of a merchandising company is a

Correct AnswerverifiedShow Answer

Correct Answer
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schedule

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