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ACCOUNTING QUESTION

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Question

1) In a firm that uses special journals, a sale of merchandise on credit is recorded in the __________ journal.;A. cash payments;B. cash receipts;C. sales;D. purchases;2) A firm that sells goods that it purchases for re-sale is a __________ business.;A. service;B. merchandising;C. manufacturing;D. non-profit;3) Merchandise is sold on credit for $600 plus 5 percent sales tax. The entry in the sales journal will include a debit to Accounts Receivable for;A. $600.00.;B. $603.50.;C. $605.50.;D. $630.00.;4) To find the balance due from an individual customer, the accountant would refer to the;A. sales journal.;B. Sales account in the general ledger.;C. accounts receivable subsidiary ledger.;D. Accounts Receivable account in the general ledger.;5) The Sales Returns and Allowances account is classified as a(n) __________ account.;A. asset;B. contra asset;C. revenue;D. contra revenue;6) If a firm had sales of $50,000 during a period and sales returns and allowances of $4,000, its net sales were;A. $54,000.;B. $50,000.;C. $46,000.;D. $4,000.;7) After all postings have been made, the total of the schedule of accounts receivable should equal the;A. balance of the Sales account.;B. total of the Accounts Receivable Debit column in the sales journal.;C. balance of the Accounts Receivable account in the general ledger.;D. total of all sales on account for the accounting period.;8) A wholesale business sells goods with a list price of $900 and a trade discount of 40 percent. The increase to the sales account should be recorded at;A. $360.00.;B. $540.00.;C. $900.00.;D. $940.00.;9) A retailer recorded the following in June: cash sales $2,000, credit sales, $9,000, sales returns and allowances, $1,000. Assuming the sales tax rate is 7 percent, the entry to record the sales tax payment includes a debit to Sales Tax Payable for;A. $560.;B. $630.;C. $700.;D. $770.;10) Most credit sales, except for those involving customer use of bank credit cards such as MasterCard and VISA, are recorded as a debit to __________ and a credit to __________.;A. Cash, Sales;B. Accounts Receivable, Sales;C. Accounts Receivable, Cash;D. Sales, Accounts Receivable;11) The adjusting entry to record estimated losses from uncollectible accounts consists of a debit to __________ and a credit to __________.;A. Uncollectible Accounts Expense, Accounts Receivable;B. Uncollectible Accounts Expense, Allowance for Doubtful Accounts;C. Allowance for Doubtful Accounts, Accounts Receivable;D. Accounts Receivable, Allowance for Doubtful Accounts;12) The method of accounting for losses from uncollectible accounts that focuses on an appropriate valuation of the accounts receivable on the balance sheet is;A. the allowance method based on aging the accounts receivable.;B. the allowance method based on a percentage of net credit sales.;C. the direct charge-off method.;D. either the allowance method or the direct charge-off method.;13) The method that must be used to record bad debt losses for tax purposes is the;A. allowance method based on a percent of net credit sales.;B. allowance method based on an aging of accounts receivable.;C. allowance method based on a percent of total accounts receivable outstanding.;D. direct charge-off method.;14) A firm reported sales of $300,000 during the year and has a balance of $20,000 in its Accounts Receivable account at year-end. Prior to adjustment, Allowance for Doubtful Accounts has a credit balance of $300. The firm estimated its losses from uncollectible accounts to be one-half of 1 percent of sales. The entry to record the estimated losses from uncollectible accounts will include a credit to Allowance for Doubtful Accounts for;A. $1,200.;B. $1,500.;C. $1,800.;D. $3,000.;15) On December 31, prior to adjustment, Allowance for Doubtful Accounts has a debit balance of $200. An aging analysis of the accounts receivable produces an estimate of $1,000 of probable losses from uncollectible accounts. The adjusting entry needed to record the estimated losses from uncollectible accounts is made for;A. $200.;B. $800.;C. $1,000.;D. $1,200.;16) On December 31, prior to adjustment, Allowance for Doubtful Accounts has a credit balance of $400. An aging analysis of the accounts receivable produces an estimate of $2,000 of probable losses from uncollectible accounts. The adjusting entry needed to record the estimated losses from uncollectible accounts is made for;A. $400.;B. $1,600.;C. $2,000.;D. $2,400.

 

Paper#74230 | Written in 18-Jul-2015

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