2023 Question 1 of 20 5 0 Points Payment of 99 for merchandise sold on credit for | Assignments Online
2023 Question 1 of 20 5 0 Points Payment of 99 for merchandise sold on credit for | Assignments Online
Assignments Online 2023 Business Finance
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Question 1 of 20 |
5.0 Points |
Payment of $99 for merchandise sold on credit for $100 subject to 1/10 n/30 was received within the discount period. This was recorded with a debit to Sales Discounts for $1, a debit to Cash for $99, and a credit to Accounts Receivable for $100, but no mention was made of the subsidiary ledger account. This error will cause the
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[removed] A. net income for the period to be overstated. |
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[removed] B. net income for the period to be understated. |
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[removed] C. control account to not agree with the subsidiary ledger. |
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[removed] D. assets to be overstated. |
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Question 2 of 20 |
5.0 Points |
The principal ledger containing all the balance sheet and income statement accounts is the _______ ledger.
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[removed] A. general |
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[removed] B. creditors’ |
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[removed] C. customers’ |
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[removed] D. subsidiary |
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Question 3 of 20 |
5.0 Points |
A Sold Merchandise for Cash subject to a sales tax accepting cash will be recorded with a
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[removed] A. credit to an asset account. |
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[removed] B. debit to a liability account. |
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[removed] C. debit to Capital. |
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[removed] D. None of the above |
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Question 4 of 20 |
5.0 Points |
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Kristi’s Pottery sold 200 tiles at $25.00 each to a charge customer, terms 1/10, n/30. Which entry is required to record this transaction?
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[removed] A. Debit Cash $5,000; credit Tile Sales $5,000 |
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[removed] B. Debit Accounts Receivable $4,050; credit Tile Sales $4,050 |
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[removed] C. Debit Accounts Receivable $4,050; debit Sales Discount $50.00; credit Tile Sales $5,000 |
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[removed] D. Debit Accounts Receivable $5,000; credit Tile Sales $5,000 |
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Question 5 of 20 |
5.0 Points |
Determine the amount to be paid within the discount period for a previous sale with an invoice price of $10,000, subject to credit terms of 1/10, n/30.
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[removed] A. $5,000.00 |
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[removed] B. $9,500.00 |
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[removed] C. $10,000.00 |
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[removed] D. $9,900.00 |
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Question 6 of 20 |
5.0 Points |
When using a subsidiary ledger, the Accounts Receivable account in the general ledger is called the _______ account.
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[removed] A. master |
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[removed] B. subsidiary |
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[removed] C. receivable |
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[removed] D. controlling |
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Question 7 of 20 |
5.0 Points |
Determine the amount of cash collected at the time of making a sale of $1,000 worth of merchandise subject to a 6% sales tax.
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[removed] A. $1,000.00 |
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[removed] B. $1,030.00 |
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[removed] C. $1,060.00 |
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[removed] D. $1,090.00 |
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Question 8 of 20 |
5.0 Points |
If a credit memorandum is issued, which account will be increased on the seller’s books?
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[removed] A. Accounts Receivable |
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[removed] B. Accounts Payable |
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[removed] C. Sales Discount |
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[removed] D. Sales Returns and Allowances |
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Question 9 of 20 |
5.0 Points |
The collection on an account within the 1/10 n/30 discount period was recorded using a 10% discount rather than a 1% discount in both the controlling and subsidiary accounts. This error will cause the
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[removed] A. the net income for the period to be understated. |
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[removed] B. the net income for the period to be overstated. |
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[removed] C. the control account to not agree with the subsidiary ledger. |
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[removed] D. the assets to be overstated. |
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Question 10 of 20 |
5.0 Points |
Which statement about subsidiary ledgers is most accurate?
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[removed] A. The subsidiary ledger accounts will never equal the control account in the general ledger. |
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[removed] B. The Accounts Receivable subsidiary ledger is a book of accounts that provides supporting detail for Accounts Receivable. |
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[removed] C. The subsidiary ledger accounts will equal the amount in the Sales account. |
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[removed] D. All of the above |
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Question 11 of 20 |
5.0 Points |
If a credit memorandum is issued, which account will be decreased on the seller’s books?
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[removed] A. Accounts Receivable |
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[removed] B. Accounts Payable |
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[removed] C. Sales Discount |
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[removed] D. Sales Returns and Allowances |
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Question 12 of 20 |
5.0 Points |
A characteristic of a schedule of Accounts Receivable is that
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[removed] A. it contains a list of customers’ names with balances. |
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[removed] B. the total is equal to the Accounts Receivable control account at the end of the month. |
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[removed] C. it’s prepared at the end of the month. |
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[removed] D. All of the above |
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Question 13 of 20 |
5.0 Points |
Sue’s Jewelry sold 30 necklaces for $25 each to a credit customer. The invoice included a 6% sales tax and payment terms of 2/10, n/30. Five necklaces were returned prior to payment. The entry to record the return would include a
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[removed] A. debit to Sales Returns and Allowances for $132.50. |
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[removed] B. debit to Sales Returns and Allowances for $125.00. |
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[removed] C. credit to Sales Tax Payable for $7.50. |
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[removed] D. debit to Accounts Receivable for $132.50. |
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Question 14 of 20 |
5.0 Points |
Entries to customers’ accounts for sales are posted in the _______ subsidiary ledger.
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[removed] A. Accounts Receivable |
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[removed] B. Accounts Payable |
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[removed] C. Fixed Asset |
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[removed] D. Cash |
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Question 15 of 20 |
5.0 Points |
The normal balance of the Accounts Receivable subsidiary ledger is
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[removed] A. credit. |
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[removed] B. debit. |
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[removed] C. It doesn’t have a normal balance. |
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[removed] D. Not enough information has been provided. |
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Question 16 of 20 |
5.0 Points |
Unlimited Materials sold goods for $2,000 plus 6% sales tax to a charge customer, terms n/30. Which entry is required to record this transaction?
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[removed] A. Debit Accounts Receivable $2,120; credit Sales Tax Payable $120; credit Sales $2,000 |
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[removed] B. Debit Cash $2,000; credit Sales $2,000 |
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[removed] C. Debit Accounts Receivable $2,000; credit Sales $2,000 |
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[removed] D. Debit Accounts Receivable $2,120; credit Sales $2,120 |
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Question 17 of 20 |
5.0 Points |
A received payment within the discount period for previously merchandise sold will be recorded with a
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[removed] A. credit to an asset account. |
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[removed] B. debit to a liability account. |
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[removed] C. debit to Capital. |
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[removed] D. None of the above |
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Question 18 of 20 |
5.0 Points |
Determine the amount of cash collected on a credit sale in the amount of $4,500 and subject to a 6% sales tax when $500 worth of merchandise has already been returned for credit.
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[removed] A. $4,240.00 |
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[removed] B. $4,500.00 |
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[removed] C. $4,000.00 |
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[removed] D. $3,860.00 |
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Question 19 of 20 |
5.0 Points |
Zach returned $200 of merchandise to Secret Trails. His original purchase was $400, with terms 1/10, n/30. If Justin pays the balance of his account after the discount period, how much should he pay?
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[removed] A. $204.00 |
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[removed] B. $196.00 |
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[removed] C. $200.00 |
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[removed] D. $400.00 |
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Question 20 of 20 |
5.0 Points |
A checkmark in the PR column in the general journal means the
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[removed] A. entry was recorded correctly. |
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[removed] B. amount was posted to the controlling account. |
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[removed] C. amount was recorded in the subsidiary ledger. |
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[removed] D. entry was audited. |
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