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Exam 7: Accounting for Sales and Accounts Receivable

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Question 31

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Ables Budget Boutique uses special journals.If a credit customer returns $40 of goods on which $3 of sales tax was charged,identify the statement below that would be correct when posting the transaction.

A) A debit of $43 would be posted to the customer's account in the accounts receivable ledger.
B) A debit of $40 would be posted to the customer's account in the accounts receivable ledger.
C) A credit of $40 would be posted to the customer's account in the accounts receivable ledger.
D) A credit of $43 would be posted to the customer's account in the accounts receivable ledger.

E) A) and C)
F) A) and B)

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Question 32

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When an accounts receivable subsidiary ledger is used,the Accounts Receivable account in the general ledger is considered to be a(n)____________________ account.

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Question 33

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If a firm had sales of $50,000 during a period and sales returns and allowances of $4,000,its net sales were

The ____________________ ledger contains accounts for credit customers.

To indicate that an amount has been posted from the sales journal to the accounts receivable subsidiary ledger,a(n)____________________ is placed in the Posting Reference column of the journal.

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

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 credit to Sales for

A customer who returns goods or receives an allowance is entitled to a credit for the appropriate amount of sales tax if tax was charged on the original sale.

In a sales journal used to record taxable sales,the total of the Accounts Receivable column should equal

The sales journal for Carothers Company is shown below.Describe how the amounts would be posted to the general ledger accounts.

The abbreviation S1 in the Posting Reference column of an account shows that the data was posted from page 1 of the sales journal.

Identify the statement below that correctly describes the Sales Returns and Allowances account.

Barnett's Electronics Store had the following transactions during the month of January 2016.Record the transactions on page 1 of a sales journal and page 1 of a general journal.Total,prove,and rule the sales journal as of January 31.

A sales return or a sales allowance is usually recorded in the sales journal.

A wholesale business sells goods with a list price of $900 and a trade discount of 40 percent.The net price is

Selected balances from the general ledger of the Loren Company on March 31,2016,are listed below.Use the appropriate data to prepare the Revenue section of the firm's income statement for the month ended March 31,2016.

A business that sells goods and services directly to individual consumers is called a(n)____________________ business.

The stock of goods kept on hand to sell to consumers is called ________________________.

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

The Sales Returns and Allowances account is presented