Indicate if the following questions are TRUE or FALSE (20 Points) PART IV: Answers 1. 2. 3. 4. The time period a customer is granted to pay the bill is the credit period. All credit sales should be recorded in the accounts receivable account and the accounts receivable subsidiary ledger. Sales Returns and Allowances has a normal debit balance. The accounts payable account also has a subsidiary ledger to which customer accounts are individually posted. Sales discounts are recorded in the general journal. Accounts receivable and accounts payable are known as controlling accounts. A debit memorandum is used to handle customer returns. The discount on an invoice reading $700, 3/10, n/30 paid within 10 days would be $21. Sales Tax Payable is a liability account with a credit balance. 5. 6. 7. 8. 9. 10. Net Sales is computed by adding Gross Sales, Sales Discounts, and Sales Returns and Allowances