A+ Answers

1. Monica’s Closet received payment in full for goods sold within the discount period on a $500 sales invoice, terms 2/10, n/30. Which entry records this payment? a. debit accounts receivable; credit sales $500 b. debit cash; credit accounts receivable $500 c. debit cash for $490, debit sales discountm$10; credit sales $500 d. debit cash for $490, debit sales discount $10; credit accounts receivable $500
2. Secret Trails received payment in full within the credit period for horse boarding for $900 plus 6% sales tax. Terms of the 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
3. R&R Lumber reports gross sales of $70,000. If sales returns and allowances are $10,000 and sales discountsnare $3,000, what are the net sales? a. $83,000 b. $63,000 c. $57,000 d. $70,000
4.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 peiod, how much should he pay? a. $204.00 b. $196.00 c. $200.00 d. $400.00
5.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
6. If a credit memorandum is issued, what account will be decreased on the seller’s books? a. Accounts receivable b. Accounts Payable c. Sales Discount d. Sales Returns and Allowances
7. A collected payment from a credit customer will recorded with a: a. Credit to an asset account b. credit to a liability account c. credit to capital d. none of the above
8.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
9.A received payment within the discount period for previously merchandise sold will be recoreded with a: a. credit to an asset account b. debit to a liability account c. debit to capital d. none of the above
11. 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
12. Determine the amount of cash collected on a credit sale in the amount of $4,500 and subject to a 6% sale 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
 13. A record showing the activity and the balance owed by each customer is called this; a. general ledger b. sales journal c. cash receipts journal d. accounts receivable subsidiary ledger
14. When using a subsidiary ledger, the Accounts Receivable accounts in the general ledger is called the; a. master account b. subsidiary account c. receivable account d. controlling account
15. When the term f.o.b. shipping point is used, title passes a. when the goods reach the halfway point b. when the goods reach the destination c. when the goods are shipped d. when the buyer unpacks the goods
16. Clothes R Us bought some new clothes for its fashion line and is required to pay the freight costs. The freight terms are: a. F.O,B. destination b. F.O.B. shipping point c. 3/10, n/30 d. none of the above
17. On february 12, clare purchased $400 of merchandise on account from Larsen’s Accessories, terms 2/10, n/30. The goods were shipped F.O.B. destination. The freight charge was $40. The amount to be recorded in the Accounts Payable Subsidiary ledger is: a. $392 b. $408 c. $400 d. $440
18. Hardware Restoration had net purchases of $50,000. If Purchases Returns and Allowances are $10,000 and Purchases. Discounts are $1,500, what are gross purchases? a. $38,500 b. $50,000 c. $61,000 d. $40,000
19. A debit memorandum increases which account on the buyers books? a. Account Payable b. Purchase Returns and Allowances c. Sales Returns and allowances d. Accounts receivable
20. A debit memorandum decreases which account on the sellers books? a. accounts Payable b. Purchase returns and allowances c. sales returns and allowances d. accounts receivable
21. The normal balance for purchase returns and allowances is: a. a debit b. a credit c. It does not have a normal balance d. zero