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Exam 7: Accounting for Sales and Accounts Receivable

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Question 41

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Selected balances from the general ledger of the Loren Company on March 31, 2013, are listed below. Use the appropriate data to prepare the Revenue section of the firm's income statement for the month ended March 31, 2013.

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Question 42

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

E) A) and B)
F) None of the above

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Question 43

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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.

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

The source document for an entry in the sales journal is a(n) ____________________.

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

The balances of selected accounts of Casper Company on February 28, 2013, were as follows: Sales $200,000 and Sales Returns and Allowances $5,000. The firm's net sales are subject to an 8 percent sales tax. Record the payment of the sales tax payable on February 28, 2013 on page 8 of a general journal.

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

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.

Bradley's Appliance Store had the following transactions during the month of May 2013. 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.

Read the description of following transactions that are required during the accounting period for Mario's Electronics. Determine the account and amount to be debited and the account and amount to be credited. A. Gave a $300 allowance to a credit customer for damaged merchandise. The original sale involved a 10 percent sales tax. B. Accepted a return of $150 in merchandise from a credit customer. The original sale involved 5 percent sales tax. C. Sold $200 in merchandise for cash. The transaction involved 8 percent sales tax. D. Received a check for $50 from a credit customer on account. E. Sold $1,200 in merchandise on credit. The transaction did not involve sales tax.

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.

The ____________________ ledger contains accounts for credit customers.

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

Match the accounting terms with the description by entering the proper number.

An example of a merchandising company is a

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

Which of the following describes Sales Returns and Allowances?

Which of the following statements is not correct?

All That Jazz Music Store had the following transactions during the month of August 2013. 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.