True/False
Indicate whether the sentence or statement is true
or false.
|
|
|
1.
|
The
sales journal is used for recording both cash sales and credit sales.
|
|
|
2.
|
Use
of a sales journal eliminates repetition in posting individual entries to the Accounts Receivable
account in the general ledger.
|
|
|
3.
|
A
sales return or a sales allowance is usually recorded in the sales journal.
|
|
|
4.
|
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.
|
|
|
5.
|
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.
|
|
|
6.
|
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.
|
|
|
7.
|
The
abbreviation S1 in the Posting Reference column of an account shows that the data were posted from
page 1 of the sales journal.
|
|
|
8.
|
The
Sale Returns and Allowances account has a normal debit balance.
|
|
|
9.
|
The
individual amounts in the Sales Credit column of the cash receipts journal are posted to the accounts
receivable subsidiary ledger.
|
|
|
10.
|
Amounts that appear in the Other Accounts Credit section of the cash receipts journal
require individual posting to the general ledger.
|
Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
|
|
|
11.
|
In a
firm that uses special journals, credit sales of merchandise are recorded in a. | the sales
journal. | b. | the general journal. | c. | the cash
receipts journal. | d. | both the sales journal and the general
journal. | | |
|
|
|
12.
|
The
entry to record a return by a credit customer of defective merchandise on which no sales tax was
charged includes a. | a debit to Sales
and a credit to Accounts Receivable. | b. | a debit to Sales and a credit to Sales Returns and
Allowances. | c. | a debit to Sales Returns and Allowances and a credit to
Accounts Receivable. | d. | a debit to Accounts Receivable and a credit to Sales Returns
and Allowances. | | |
|
|
|
13.
|
The
Sales account is classified as a. | a liability account. | c. | a contra account. | b. | an asset
account. | d. | a revenue
account. | | | | |
|
|
|
14.
|
The
Sales Returns and Allowances account is presented a. | on the balance sheet as a deduction from Accounts
Receivable. | b. | on the income statement as a deduction from
Sales. | c. | on the income statement as an addition to
Sales. | d. | on the balance sheet as a deduction from the Capital
account. | | |
|
|
|
15.
|
To
find the balance due from an individual customer, the accountant would refer to a. | the sales
journal. | b. | the Sales account in the general
ledger. | c. | the accounts receivable subsidiary
ledger. | d. | the Accounts Receivable account in the general
ledger. | | |
|
|
|
16.
|
If a
firm had sales of $60,000 during a period and sales returns and allowances of $3,000, its net sales
were a. | $63,000. | c. | $60,000. | b. | $57,000. | d. | $3,000. | | | | |
|
|
|
17.
|
The
Sales Returns and Allowances account is classified as a. | an asset
account. | c. | a revenue
account. | b. | a contra asset account. | d. | a contra revenue account. | | | | |
|
|
|
18.
|
In a
firm that uses special journals, cash collected from credit customers is a. | recorded in the
general journal. | c. | recorded in the
sales journal. | b. | recorded in the cash receipts
journal. | d. | recorded in the
cash payments journal. | | | | |
|
|
|
19.
|
A
cash sale of merchandise would be recorded in a. | the sales journal. | c. | the cash receipts journal. | b. | the general
journal. | d. | the cash
payments journal. | | | | |
|
Numeric Response
|
|
|
20.
|
What
amount should be received from a customer paying within the discount period for a $5,500 sale with
terms 2/10, n/30?
|
|
|
21.
|
What
discount amount should be taken (if any) for a $4,000 sale on March 2 with terms 3/10, 1.5/20, n/60
if the payment was received on March 17?
|
|
|
22.
|
The
customer bought merchandise on account in the amount of $5,000, terms 2/10, n/60. The freight
charges totaled $100, terms F.O.B. Destination. The customer returned $600 of the merchandise 4
days after the sale and paid in full 10 days after the sale. How much should have been
received?
|
|
|
23.
|
From
the following information determine the Net Sales:
Sales,
$225,000 | Freight In, $500 | Sales Discounts,
$2,000 | Purchases, $150,000 | Sales Returns,
$3,000 | Accounts Receivable, $80,000 | | | |
|
Matching
|
|
|
Match
the definitions with these choices: a. | subsidiary ledger | e. | sales | b. | sales
journal | f. | sales returns
and allowances | c. | sales discount | g. | credit memorandum | d. | controlling
account | h. | merchandise
inventory | | | | |
|
|
|
24.
|
An
account in the general ledger that summarizes the balances of a subsidiary ledger.
|
|
|
25.
|
A
written statement indicating a seller's willingness to reduce the amount of a buyer's
debt.
|
|
|
26.
|
A
revenue account for recording the sale of merchandise.
|
|
|
27.
|
An
account that records a deduction from the original price, granted by the seller to the buyer for the
prompt payment of an invoice.
|
|
|
28.
|
For
recording the sale of merchandise on account only.
|
|
|
29.
|
The
account a seller uses to record the physical return of merchandise by customers or a reduction in a
bill because merchandise was damaged.
|
|
|
30.
|
A
group of accounts representing individual subdivisions of a controlling account.
|