6. A customer pays his $1,000 invoice 5 days after receiving it. Terms were 1/5, n/20. What would be recorded in the cash receipt journal?

A. Debit to cash $990

B. Credit to sales discount $10

C. Credit to sales revenue $1,000

D. Debit to sales revenue $10

7. Centex Sound Systems purchased inventory costing $8,000 from Sony on credit. Where should Centex record this transaction and what account is credited.

A. Cash payments journal; credit cash

B. Purchases journal; credit accounts payable

C. Sales journal; credit sales revenue

D. General journal; credit inventory

8. Every transaction recorded in the cash receipts journal includes a:

A. Credit to cash

B. Debit to accounts receivable

C. Debit to sales discounts

D. Debit to cash

9. The purchase journal is used to record all:

A. Purchases of assets

B. Payments of purchases on credit

C. Purchases of inventory

D. Purchases on credit

10. The individual accounts in the accounts receivable subsidiary ledger identify:

A. Creditors

B. Customers

C. Amounts to be paid

D. Suppliers