____ 26. In a firm that uses special journals, credit sales of merchandise are recorded in a. the sales journal. b. the general journal. c. the cash receipts journal. d. both the sales journal and the general journal. ____ 27. 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 a. $600.00. c. $605.50. b. $603.50. d. $630.00. ____ 28. The entry to record a return by a credit customer of defective merchandise on which no sales tax was charged includes a. a debit to Sales and a credit to Accounts Receivable. b. a debit to Sales and a credit to Sales Returns and Allowances. c. a debit to Sales Returns and Allowances and a credit to Accounts Receivable. d. a debit to Accounts Receivable and a credit to Sales Returns and Allowances. ____ 29. If a firm does not have a sales returns and allowances journal, the entries for these transactions are made in a. the sales journal. c. the cash receipts journal. b. the general journal. d. the cash payments journal. ____ 30. The Sales account is classified as a. a liability account. c. a contra account. b. an asset account. d. a revenue account. ____ 31. The Sales Returns and Allowances account is presented a. on the balance sheet as a deduction from Accounts Receivable. b. on the income statement as a deduction from Sales. c. on the income statement as an addition to Sales. d. on the balance sheet as a deduction from Capital. ____ 32. To find the balance due from an individual customer, the accountant would refer to a. the sales journal. b. the Sales account in the general ledger. c. the accounts receivable subsidiary ledger. d. the Accounts Receivable account in the general ledger. ____ 33. If a firm had sales of $50,000 during a period and sales returns and allowances of $4,000, its net sales were a. $54,000. c. $46,000. b. $50,000. d. $4,000. ____ 34. In a sales journal used to record taxable sales, the total of the Accounts Receivable column should equal a. the sum of the totals of the Sales Tax Payable column and the Sales column. b. the difference between the total of the Sales Tax Payable column and the total of the Sales column. c. the total of the Sales column. d. the total of the Sales Tax Payable column. ____ 35. After all postings have been made, the total of the schedule of accounts receivable should equal a. the balance of the Sales account. b. the total of the Accounts Receivable Debit column in the sales journal. c. the balance of the Accounts Receivable account in the general ledger. d. the total of all sales on account for the accounting period. ____ 36. A firm that sells goods that it purchases for re-sale is a a. service business. c. manufacturing business. b. merchandising business. d. non-profit business. ____ 37. The Sales Returns and Allowances account is classified as a. an asset account. c. a revenue account. b. a contra asset account. d. a contra revenue account. ____ 38. In a firm that uses special journals, cash collected from all sources is a. recorded in the general journal. c. recorded in the sales journal. b. recorded in the cash receipts journal. d. recorded in the cash payments journal. ____ 39. A wholesale business sells goods with a list price of $900 and a trade discount of 40 percent. The net price is a. $360.00. c. $900.00. b. $540.00. d. $940.00. ____ 40. The amount used by wholesalers to record sales in its sales journal is a. the retail price. c. the net price. b. the list price. d. the original price. ____ 41. 16.A retailer recorded the following in June: cash sales $2,000; credit sales, $9,000; sales returns and allowances, $1,000. Assuming the sales tax rate is 7%, the entry to record the sales tax payment includes a debit to Sales Tax Payable for a. $560 c. $700 b. $630 d. $770