Chapter 7 Accounting – Flashcards
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In a firm that uses special journals, a sale of merchandise on credit is recorded in the
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Sales Journal
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In a firm that uses special journals, the acceptance of a return of merchandise from a credit customer is recorded in the
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General Journal
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In a firm that uses special journals, the sale of merchandise for cash is recorded in the
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Cash Receipts Journal
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In a firm that uses special journals, the purchase of merchandise on credit is recorded in the
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purchases journal
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IN a firm that uses special journals, an allowance given for damaged merchandise is recorded in the
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General Journal
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In a firm that uses special journals, the collection of sums on account from credit customers is recorded in the
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cash receipts journal
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In a firm that uses special journals, an additional cash investment received from the owner is recorded in the
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cash receipts journal
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In a firm that uses special journals, the issuance of a check to pay a creditor on account is recorded in the
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cash payments journal
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The sales account is classified as
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a revenue account
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a firm that sells goods that purchases for re-sale is a
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merchandising business
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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
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$630
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In a sales journal used to record taxable sales, the total of the Accounts Receivable column should equal
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the sum of the totals of the Sales Tax Payable column and the Sales column
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Which of the following statements is correct?
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Since the sales journal is used for a single purpose, there is no need to enter any descriptions.
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Which of the following statements is not correct?
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If the firm must collect sales tax on retail transactions, the sales journal should have a Sales Tax Payable Debit column.
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. Which of the following statements is not correct?
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. Postings to the accounts receivable subsidiary ledger are usually made once a month on the last day of the month.
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To find the balance due from an individual customer, the accountant would refer to
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the accounts receivable subsidiary ledger
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The entry to record a return by a credit customer of defective merchandise on which no sales tax was charged includes
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a debit to Sales Returns and Allowances and a credit to Accounts Receivable
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. If a firm does not have a sales returns and allowances journal, the entries for these transactions are made in
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. the general journal.
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The Sales Returns and Allowances account is classified as
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. a contra revenue account.
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The Sales Returns and Allowances account is presented
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on the income statement as a deduction from Sales.
