102505_accounting_basics_lesson_11.docx-Payment of $99 for merchandise sold on credit for $100 subject to 1/10 n/30
Question;Question 1 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 the;A. net income for the period to be;overstated.;B. net income for the period to be;understated.;C. control account;to not agree with the subsidiary ledger.;D. assets to be overstated.;Question 2 of 20;5.0;Points;The principal ledger containing all;the balance sheet and income statement accounts is the _______ ledger.;A. general;B. creditors?;C. customers?;D. subsidiary;Question 3 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;Question 4 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;Question 5 of 20;5.0;Points;Determine the amount to be paid;within the discount period for a previous sale with an invoice price of;$10,000, subject to credit terms of 1/10, n/30.;A. $5,000.00;B. $9,500.00;C. $10,000.00;D. $9,900.00;10,000 x (1 ? 0.01) = 9900;Question 6 of 20;5.0;Points;When using a subsidiary ledger, the;Accounts Receivable account in the general ledger is called the;account.;A. master;B. subsidiary;C. receivable;D. controlling;Question 7 of 20;5.0;Points;Determine the amount of cash collected;at the time of making a sale of $1,000 worth of merchandise subject to a 6%;sales tax.;A. $1,000.00;B. $1,030.00;C. $1,060.00;D. $1,090.00;1000 x (1+0.06) = 1060;Question 8 of 20;5.0;Points;If a credit memorandum is issued, which;account will be increased on the seller?s books?;A. Accounts Receivable;B. Accounts Payable;C. Sales Discount;D. Sales Returns;and Allowances;Question 9 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 the;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.;Question 10 of 20;5.0;Points;Which statement about subsidiary;ledgers is most accurate?;A. The subsidiary ledger accounts;will never equal the control account in the general ledger.;B. The Accounts;Receivable subsidiary ledger is a book of accounts that provides supporting;detail for Accounts Receivable.;C. The subsidiary ledger accounts;will equal the amount in the Sales account.;D. All of the above;Question 11 of 20;5.0;Points;If a credit memorandum is issued;which account will be decreased on the seller?s books?;A. Accounts;Receivable;B. Accounts Payable;C. Sales Discount;D. Sales Returns and Allowances;Question 12 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?s prepared at the end of the;month.;D. All of the above;Question 13 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.;5 x $25 = $125 sales returns;allowances debit;Question 14 of 20;5.0;Points;Entries to customers? accounts for;sales are posted in the _______ subsidiary ledger.;A. Accounts;Receivable;B. Accounts Payable;C. Fixed Asset;D. Cash;Question 15 of 20;5.0;Points;The normal balance of the Accounts;Receivable subsidiary ledger is;A. credit.;B. debit.;C. It doesn?t have a normal;balance.;D. Not enough information has been;provided.;Question 16 of 20;5.0;Points;Unlimited Materials sold goods for;$2,000 plus 6% sales tax to a charge customer, terms n/30. Which entry is;required to record this transaction?;A. Debit Accounts;Receivable $2,120, credit Sales Tax Payable $120, credit Sales $2,000;B. Debit Cash $2,000, credit Sales;$2,000;C. Debit Accounts Receivable;$2,000, credit Sales $2,000;D. Debit Accounts Receivable;$2,120, credit Sales $2,120;Question 17 of 20;5.0;Points;A received payment within the;discount period for previously merchandise sold 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;Question 18 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;($4500 ? 500) x 1.06 = $4240;Question 19 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;Question 20 of 20;5.0;Points;A checkmark in the PR column in the;general journal means the;A. entry was recorded correctly.;B. amount was posted to the;controlling account.;C. amount was;recorded in the subsidiary ledger.;D. entry was audited.
Paper#39116 | Written in 18-Jul-2015Price : $27