Please check my homework to see if it is correct.

Next to each of the following statements, write True or False

1. Sales is an asset account: False (Revenue)
2. Sales Tax Payable is an asset account: False (Liability)
3. Sales Returns and Allowances is a contra-asset account: False (Contra-Revenue)
4. Sales Discounts is a contra-asset account: False (Contra-Revenue)
5. If the discount terms are 4/10, n/30, the 30 indicates that the discount period is 30 days: False
6. Refer to #5. The 10 indicates a 10% discount: False
7. Refer to #5. The 4 indicates a 4-day grace period: False
8. Sales Returns and Allowance is used when a customer returns merchandise: True
9. Sales Discounts is used when the customer takes advantage of a cash discount: False
10. If merchandise is sold for $1000, the Sales account should be debited. False
11. If a sales transaction involves sales tax, Sales Tax Payable should be credited: True
12. If a customer returns merchandise, Sales Returns and Allowances should be debited. True
13. If a customer pays within the discount period, Sales Discounts should be debited. True
14. If the discount terms are 2/10, n/30, the customer must pay within 10 days to get the discount. True
15. Refer to #14. If the customer does not pay within 10 days, full payment is due within 30 days. True
16. Refer to #14. If the customer pays within 30 days, he/she gets a 2% discount. False
17. For a sale on account, a return of merchandise should not involve a cash refund. True
18. Refer to #17. Assuming is it a sale on account, a return of merchandise by the customer should require that he/she receives a credit advice indicating that money is no longer owed. True
19. If the Sales Returns and Allowances account is used frequently, it indicates that the business has some serious problems. True
20. Merchandise represents inventory. True