Accounting Chapter 16 – Special Journals: Sales and Cash Receipts – Flashcards
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Sales taxes are not usually charged on sales of merchandise to government agencies.
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True
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The individual amounts in the Accounts Receivable Debit column of the sales journal are to be posted on a monthly basis
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False
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Most transactions recorded in the cash receipts journal result in a debit to Accounts Receivable and a credit to Cash.
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False
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The sales journal is used to record any sale of merchandise, whether on account or for cash.
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False
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When preparing a schedule of accounts receivable, enter only amounts that have a balance.
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False
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The column totals from the sales journal are posted to three separate general ledger accounts.
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True
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Every transaction recorded in the cash receipts journal results in a debit to cash.
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True
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When posting from a special journal, post information moving from top to bottom rather than left to right.
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False
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The total of an amount column in a special journal is posted to the general ledger account named in the column heading.
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True
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Only the sale of merchandise on account is recorded in the sales journal.
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True
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Cash discounts are computed on the total amount of merchandise sold and not the sales tax
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True
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Amounts recorded in the General Credit column of the cash receipts journal are to be posted when the transaction is journalized.
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True
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A( n ) __ is a report listing each charge customer's name and account balance and the total amount due from all charge customers.
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Schedule of Accounts Receivable
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All transactions in which cash is received are recorded in the __.
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Cash Receipts Journal
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A column total written in small pencil figures is called a( n ) __.
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Footing
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A( n ) __ , which simplifies the journalizing and posting process, has special columns that are used for recording specific types of business transactions
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Special Journal
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The sale of merchandise on account is recorded in the __.
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Sales Journal
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When first totaling amount columns in a special journal always use a pencil.
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True
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Two major advantages of a special journal are that it saves time in recording and posting business transactions.
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True
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The cash register tape is the source document for recording cash and bank card sales.
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True
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Only customer accounts with balances are entered on the schedule of accounts receivable.
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False
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The subsidiary ledger and the controlling account can balance even if an amount was posted to the wrong account.
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True
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Cash sales are recorded in the sales journal.
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False
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Footings are always completed in pencil, and column totals are written in ink.
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True
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Merchandising businesses sell strictly on a cash basis.
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False
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Customer accounts are listed in alphabetical order in the accounts receivable subsidiary ledger.
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True
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After a posting has been made from the sales or cash receipts journal to a customer's account, the customer account number is entered in the Posting Reference column of the journal.
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False
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Postings are made to customer accounts usually at the end of the week.
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False (everyday)
