| D. debit to Sales for $500 2. Recording to the Accounts Receivable subsidiary ledger is done __________. | A. daily | | B. monthly | | C. quarterly | | D. annually | The Accounts Receivable subsidiary ledger __________. | A. is organized in alphabetical order | | B. is not kept in the same book as Accounts Receivable | | C. should equal the controlling account in the general ledger | | D. all of the above When using a subsidiary ledger, the Accounts Receivable account in the general ledger is called the __________. | A. master account | | B. subsidiary account | | C. receivable account | | D. controlling account | A collected payment from a credit customer will be recorded with a __________. | A. credit to an asset account | | B. credit to a liability account | | C. credit to Capital | | D. none of the above | 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 | Sues 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 | Kristis 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 | The normal balance of the Accounts Receivable subsidiary ledger is __________. | A. credit | | B. debit | | C. It does not have a normal balance. | | D. not enough information provided | 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 | 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 | 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 __________. | A. the net income for the period to be overstated | | B. the net income for the period to be understated | | C. the control account to not agree with the subsidiary ledger | | D. the assets to be overstated | 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 is prepared at the end of the month | | D. all of the above | Sues 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 payment would include a __________. | A. credit to Cash for $625.00 | | B. credit to Cash for $662.50 | | C. credit to Accounts Receivable for $625.00 | | D. credit to Accounts Receivable for $662.50 | Secret Trails received payment in full within the credit period for horse boarding for $900 plus 6% 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 | R&R Lumber reports gross sales of $70,000. If sales returns and allowances are $10,000 and sales discounts are $3,000, what are the net sales? | A. $83,000 | | B. $63,000 | | C. $57,000 | | D. $70,000 | 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 __________. | 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 | A checkmark in the PR column in the general journal means: | A. the entry was recorded correctly | | B. the amount was posted to the controlling account | | C. the amount was recorded in the subsidiary ledger | | D. the entry was audited | If a credit memorandum is issued, what account will be increased on the sellers books? | A. Accounts Receivable | | B. Accounts Payable | | C. Sales Discount | | D. Sales Returns and Allowances | |
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