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Payment of $99 For Merchandise Sold

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1. 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.;2. The principal ledger containing all the balance sheet and income statement accounts is the _______ ledger.;A. general;B. creditors?;C. customers?;D. subsidiary;3. 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;4. 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;5. 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;Calculation = xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx;6. 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;7. 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;Calculation;xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx;8. 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;9. 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.;10. 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;11. 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;12. 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;13. 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.;Calculation;xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx;14. Entries to customers? accounts for sales are posted in the _______ subsidiary ledger.;A. Accounts Receivable;B. Accounts Payable;C. Fixed Asset;D. Cash;15. 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.;16. 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;17. 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;18. 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;Calculation;xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx;19. 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;20. 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#79818 | Written in 18-Jul-2015

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