1.

If a company purchases $15,200 of merchandise on credit, which journal will the transaction be recorded in?

A.	Cash disbursements journal.

B.	Sales journal.

C.	Cash receipts journal.

D.	Purchases journal.

E.	General journal.

2.

Maxie's Game World sold games to a customer on credit for $2,600, terms 1/10, n/30 and the cost of the games was $1,700. When recording the collection from the customer made within the discount period, in its cash receipts journal, Maxie's would enter:

A.	$2,600 in the Cash Dr. column and $2,600 in the Accounts Receivable Cr. column.

B.	$2,574 in the Cash Dr. column and $2,574 in the Accounts Receivable Cr. column.

C.	$2,574 in the Cash Dr. column, $26 in the Sales Discount Dr. column and $2,600 in the Accounts Receivable Cr. column.

D.	$2,600 in the Accounts Receivable Dr./Sales Cr. column and $2,600 in the Cash Cr. column.

E.	$2,600 in the Cash Dr. column. $2,600 in the Sales Cr. column, and $1,700 in the Cost of Goods Sold Dr./Inventory Cr. column.

3.

Wildlife Wholesale Supply sold birdseed to a retailer for $860, receiving cash at the time of sale. The cost of the birdseed was $370. When recording the collection from the customer, in its cash receipts journal, Wildlife would enter:

A.	$860 in the Cash Dr. column and $860 in the Accounts Receivable Cr. column.

B.	$370 in the Cash Dr. column and $370 in the Accounts Receivable Cr. column.

C.	$860 in the Cash Dr. column; $860 in the Sales Cr. column; and $370 in the Other Accounts Cr. column.

D.	$860 in the Accounts Receivable Dr. column, $860 in the Cash Cr. column; and $370 in the Cost of Goods Sold Dr./Inventory Cr. column.

E.	$860 in the Cash Dr. column; $860 in the Sales Cr. column; and $370 in the Cost of Goods Sold Dr./Inventory Cr. column.