12. The process of initially recording business transactions in a journal is called

1. sliding.
2. posting.
3. Journalizing.
4. Transposing.

13. Renzi's Volleyball Gym purchased equipment for $1,400. It made a down payment of $800 with the remainder on account. The journal entry to record this transaction is

a. Cash 800

Accounts Receivable 800

b. Accounts Payable 600

Cash 800

Equipment 1,400

c . Supplies 1,400

Cash 800

Accounts Payable 600

d. Equipment 1,400

Accounts Payable 600

Cash 800

14. The proper format for a journal entry includes all of the following EXCEPT

1. the total amounts of debits must equal the total amount of credits.
2. skip a line between transactions.
3. the credit portion of the transaction is always first.
4. listed in chronological order.

15. Credit terms of 1/10, n/30 mean that

1. 1% discount is allowed if the bill is paid within 10 days, or the entire amount is due within 30 days.
2. a discount is allowed if the bill is paid within 30 days.
3. a discount is allowed if the bill is paid after 10 days.
4. a 1% discount is allowed if the customer pays the bill within 30 days.