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1. Sue’s Jewelry sold 20 necklaces for $25 each to a credit...

1. Sue’s Jewelry sold 20 necklaces for $25 each to a credit customer. The invoice included a 6% sales tax and payment terms of 2/10, n/30. Five necklaces were returned prior to payment. The entry to record the original sale would include a __________.


  A. debit to Accounts Receivable for $530
  B. debit to Accounts Receivable for $500
  C. debit to Sales for $530
  D. debit to Sales for $500


2. Recording to the Accounts Receivable subsidiary ledger is done __________.

  A. daily
  B. monthly
  C. quarterly
  D. annually
4 of 20 5.0 Points
The Accounts Receivable subsidiary ledger __________.
  A. is organized in alphabetical order
  B. is not kept in the same book as Accounts Receivable
  C. should equal the controlling account in the general ledger
  D. all of the above


 5 of 20 5.0 Points
When using a subsidiary ledger, the Accounts Receivable account in the general ledger is called the __________.
  A. master account
  B. subsidiary account
  C. receivable account
  D. controlling account

6 of 20 5.0 Points
A collected payment from a credit customer will be recorded with a __________.
  A. credit to an asset account
  B. credit to a liability account
  C. credit to Capital
  D. none of the above

 7 of 20 5.0 Points
Zach returned $200 of merchandise to Secret Trails. His original purchase was $400, with terms 1/10, n/30. If Justin pays the balance of his account after the discount period, how much should he pay?
  A. $204.00
  B. $196.00
  C. $200.00
  D. $400.00

8 of 20 5.0 Points
Sue’s Jewelry sold 30 necklaces for $25 each to a credit customer. The invoice included a 6% sales tax and payment terms of 2/10, n/30. Five necklaces were returned prior to payment. The entry to record the return would include a __________.
  A. debit to Sales Returns and Allowances for $132.50
  B. debit to Sales Returns and Allowances for $125.00
  C. credit to Sales Tax Payable for $7.50
  D. debit to Accounts Receivable for $132.50

9 of 20 5.0 Points
Kristi’s Pottery sold 200 tiles at $25.00 each to a charge customer, terms 1/10, n/30. Which entry is required to record this transaction?
  A. debit Cash $5,000; credit Tile Sales $5,000
  B. debit Accounts Receivable $4,050; credit Tile Sales $4,050
  C. debit Accounts Receivable $4,050; debit Sales Discount $50.00, credit Tile Sales $5,000
  D. debit Accounts Receivable $5,000; credit Tile Sales $5,000

10 of 20 5.0 Points
The normal balance of the Accounts Receivable subsidiary ledger is __________.
  A. credit
  B. debit
  C. It does not have a normal balance.
  D. not enough information provided

11 of 20 5.0 Points
Determine the amount of cash collected on a credit sale in the amount of $4,500 and subject to a 6% sales tax when $500 worth of merchandise has already been returned for credit.
  A. $4,240.00
  B. $4,500.00
  C. $4,000.00
  D. $3,860.00

12 of 20 5.0 Points
A Sold Merchandise for Cash subject to a sales tax accepting cash will be recorded with a __________.
  A. credit to an asset account
  B. debit to a liability account
  C. debit to Capital
  D. none of the above

13 of 20 5.0 Points
Payment of $99 for merchandise sold on credit for $100 subject to 1/10 n/30 was received within the discount period. This was recorded with a debit to Sales Discounts for $1, a debit to Cash for $99, and a credit to Accounts Receivable for $100, but no mention was made of the subsidiary ledger account. This error will cause __________.
  A. the net income for the period to be overstated
  B. the net income for the period to be understated
  C. the control account to not agree with the subsidiary ledger
  D. the assets to be overstated

14 of 20 5.0 Points
A characteristic of a schedule of Accounts Receivable is that __________.
  A. it contains a list of customers’ names with balances
  B. the total is equal to the Accounts Receivable control account at the end of the month
  C. it is prepared at the end of the month
  D. all of the above

15 of 20 5.0 Points
Sue’s Jewelry sold 30 necklaces for $25 each to a credit customer. The invoice included a 6% sales tax and payment terms of 2/10, n/30. Five necklaces were returned prior to payment. The entry to record the payment would include a __________.
  A. credit to Cash for $625.00
  B. credit to Cash for $662.50
  C. credit to Accounts Receivable for $625.00
  D. credit to Accounts Receivable for $662.50

16 of 20 5.0 Points
Secret Trails received payment in full within the credit period for horse boarding for $900 plus 6% sales tax. Terms of the sale were 2/10, n/30. Which entry is required to record this payment?
  A. debit Cash, $900; credit Accounts Receivable Sales $900
  B. debit Cash, $936; debit Sales Discount $18; credit Accounts Receivable $954
  C. debit Cash, $954; credit Sales $954
  D. debit Cash, $936; credit Sales $936

17 of 20 5.0 Points
R&R Lumber reports gross sales of $70,000. If sales returns and allowances are $10,000 and sales discounts are $3,000, what are the net sales?
  A. $83,000
  B. $63,000
  C. $57,000
  D. $70,000

18 of 20 5.0 Points
The collection on an account within the 1/10 n/30 discount period was recorded using a 10% discount rather than a 1% discount in both the controlling and subsidiary accounts. This error will cause __________.
  A. the net income for the period to be understated
  B. the net income for the period to be overstated
  C. the control account to not agree with the subsidiary ledger
  D. the assets to be overstated

19 of 20 5.0 Points
A checkmark in the PR column in the general journal means:
  A. the entry was recorded correctly
  B. the amount was posted to the controlling account
  C. the amount was recorded in the subsidiary ledger
  D. the entry was audited

20 of 20 5.0 Points
If a credit memorandum is issued, what account will be increased on the seller’s books?
  A. Accounts Receivable
  B. Accounts Payable
  C. Sales Discount
  D. Sales Returns and Allowances






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