Read each statement carefully. If the statement is true, circle A, if the statement is false, Circle B 1. Cash in the chart of accounts is an example of a control account. A) True B) False 2. The seller would record the return of merchandise sold on account in the sales journal. A) True B) False 3. Credit postings to the accounts receivable general ledger account come from the cash receipts journal and the general journal A) True B) False 4. A deposit in transit has been recorded by the bank but not the company A) True B) False 5. The Cash Short and Over account is debited when sales revenue exceeds cash receipts. A) True B) False 6. When using the allowance method, the entry to write off an accounts receivable has no effect on income A) True B) False 7. It is normal to have a debit balance in the allowance for doubtful accounts account after adjusting journal entries at the end of the year. A) True B) False