1. The normal balance of Sales Discounts is .

2. and . is a contra-revenue account.

3. Sales discount is a _ account.

4. A discount period is less time than the_

5. A __ records the sale of merchandise on account.

6. The _ lists in alphabetical order an account for

each customer.

7._ in the general ledger is called the controlling account.

8. The (v) in the sales journal indicates that the accounts receivable ledger has been

updated _

9. The totals of the sales journal are posted at the _ to

the general ledger account.

10. VAT Payable is a _ in the general ledger.

11. Issuing a_ results in the seller reducing its accounts

receivable.

12. Sales Returns and Allowances is a_ account.

13. The_ records the receipt of cash from any source.

14. The total of the_ column in the cash receipts journal is never

posted.

15. A _ lists the ending balances from the accounts

receivable ledger.

16. F.O.B. shipping point means the_ covers the shipping cost.

17. The Purchases account has a _ balance.

18. Purchases are defined as merchandise for _ to customers.

19. The accounts payable subsidiary ledger represents a potential _ of

cash.

20. The controlling account in the general ledger for the accounts payable subsidiary ledger is called_

21, The balance in the Accounts Payable controlling account should be equal to the sum

of the accounts payable ledger accounts_

22. The total of the other accounts column is_

23 The (V) in the reference column indicates that the _

has been updated.

24. A _ that is issued means the buyer owes less money, as

merchandise is being returned or an allowance received.

25. A debit memorandum issued or a credit memorandum received results in a

_ to Accounts Payable and a credit to Purchases, Returns, and

Allowances.

26. List price net price =._ amount.

27. The accounts payable ledger is listed in _ .

28. Purchases, Returns, and Allowances is increased by a _ .

29. The cash payments journal records transactions that involve outward flows of

_

30. The cash payments journal alleviates certain repetitive_

31 Purchases Discounts is increased by._

32. A _ provides the purchasing department the

information to then make a purchase order.

33. A _ is made out after a company inspects received

shipments. to the

34. The total of the cash column is posted at the _

general ledger.

True or False

1. Transactions involving the payment of cash for any purpose are usually recorded in

a cash journal.

2. Special journals are modified in practice to adapt to the specific needs of an entity.

3. The primary ledger that contains all of the balance sheet and income statemnt

accounts is called the general ledger.

4. At the end of each month, the total of the amount column of the sales journal is

posted as a debit to accounts receivable and a credit to sales.

5. After postings have been completed for the month, if the sum of the balances in the

accounts receivable subsidiary ledger does not agree with the balance of the

accounts receivable account in the general ledger, the errors must be located and

corrected.

6. Sales on account of office equipment used in the business would be recorded in the

sales journal.

7. Each amount in the other accounts column of the cash receipts journal must be

posted individually to the appropriate general ledger account.

8. When there are numerous accounts with a common characteristic, it is common to

place them in a separate ledger called a detail ledger.

9. The sale of merchandise for cash is recorded in the sales journal.

10. The total of the other accounts column of the cash receipts journal is not posted t0

the general ledger.

11. When special journals, control accounts and subsidiary ledgers are used, no posting

to any ledger is performed until the end of the month.

12. For each transaction recorded in the purchases journal, the credit is entered in the

accounts payable column.

13. Acquisitions on account which are not provided for in special debit columns are

recorded in the other accounts column in the purchases journal.

14. Debits to creditors' accounts for invoices paid are recorded in the accounts payable

debit column of the cash payments journal.

15. Comparing the purchase order with the receiving report will show that all the goods

ordered actually arrived and that all goods that arrived were actually ordered.

16. The total of the accounts payable column in the cash payments journal is posted at

the end of the month as a debit to accounts payable and a credit to cash.

17. When customers are allowed to return merchandise for credit to their accounts,

these transactions are recorded in the general journal.

18. A check register is used to record all expenditures.

19 The voucher register is a substitute for a sales journal.

20 The voucher register takes the place of the cash payments journal.

Multiple Choice

1.The type of transaction that would appear in the sales journal would be a sale of

a. equipment for cash.

b. equipment in exchange fora note.

C. merchandise for cash.

d. merchandise on account.

2. The receipt of cash arising from a sales transaction would be recorded in the

a. cash payments journal. C. purchases journal.

b. cash receipts journal. d. sales journal.

3. The classification and normal balance of the sales discount account would be

a. contra revenue and debit. C. expense and debit.

b. contra revenue and debit. d. revenue and credit.

4. An item retailing for P10,000, subject to mo trade discount of 25%, is paid for within

the discount period on terms of 2/10, n/30. What is the amount of payment?

a. P10,000 C. P7,400

b. P 7,500 d. P7,350

5. Each time an entry is recorded in the purchases journal, the credit would be entered

in the

a. accounts payable column. C. purchases column.

b. accounts receivable column. d. supplies column.

6. Which of the following items would be recorded in the purchases journal?

a. equipment purchased on account

b. merchandise purchased on account

C. supplies purchased on account

d. all of the above

7. The controlling account in the general ledger that summarizes the debits and credits

to the individual accounts in the customers' ledger is called

a. accounts payable. C.purchases.

b. accounts receivable. d. sales.

8. Infrequent sales returns would be recorded in which journalr

a. cash payments C. general

b. cash receipts d. sales returns

9 The individual amounts in the accounts payable column of the purcnase

posted to the appropriate account in the

a. accounts payable ledger. C. general journal.

b. accounts receivable ledger. d. general ledger.

10. The controlling account in the general ledger that summarizes the individual

accounts with creditors in a subsidiary ledger is called

3. accounts payable. C. purchases.

b. accounts receivable. d. sales returns and allowances.

11. f a firm uses special journals, in which journal would the sale of merchandise tor

cash be recorded?

a. cash disbursements journal C. general journal

b. cash receipts journal d. sales journal

12. A firm that uses special journals acquired merchandise for P5,000, giving a P5,000

note payable. In which journal would the transaction be recorded?

a. cash disbursements journal C. general journal

b. cash receipts journal d. purchases journal

13. A special journal contained columns for cash, purchases discounts, and accounts

payable. This journal is

a. a cash disbursements journal. C. a purchases journal.

b. a cash receipts journal. d. a sales journal.

14. Which of the following is true of a voucher system?

All major expenditures, including cash transactions for payment of rent and

a utilities expense, would first be credited to vouchers payable before payment is

made.

b. The check register replaces the cash receipts journal.

C.The voucher register contains a debit column for vouchers payable.

d. Transactions are first entered in the check register, and later, when payment is made, in the voucher register.

15. When merchandise is returned or a pice adjustment is granted, an entry is made in

the

a. adjustments journal. c. general journal.

b. cash receipts journal. d. purchases journal.