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1
After posting the total goods sold on account to the Accounts Receivable account, the accountant places a check mark below the Accounts Receivable column in the sales journal.
A)True
B)False
2
The Sales Returns and Allowances account normally has a credit balance.
A)True
B)False
3
Generally, the Accounts Receivable controlling account will be up to date only at the end of the month.
A)True
B)False
4
When a customer returns goods for credit, the transaction is recorded in the general journal.
A)True
B)False
5
The total of goods sold on account is normally posted monthly from the sales journal to the general ledger.
A)True
B)False
6
For a sale of $300, on which 8 percent sales tax is charged, the amount debited to Accounts Receivable is $300.
A)True
B)False
7
When a journal entry includes either a debit or a credit to Accounts Receivable, the amount must be posted to both the general ledger and the subsidiary ledger.
A)True
B)False
8
The Sales Returns and Allowances account is increased with a credit.
A)True
B)False
9
When recording sales of goods for cash, debit Accounts Receivable and credit Cash.
A)True
B)False
10
One of the advantages of a sales journal is that it eliminates daily postings of individual sales transactions into the Accounts Receivable account in the general ledger.
A)True
B)False
11
When a customer pays his balance within the discount period granted the journal entry includes a debit to the Cash account.
A)True
B)False
12
When a customer returns merchandise which he purchased on account, the journal entry would include a credit to the Sales Returns and Allowances account.
A)True
B)False
13
When a sale is made on account, the journal entry includes a credit to the Sales account.
A)True
B)False
14
The Sales Discount account is a contra-revenue account to the Sales Account.
A)True
B)False
15
Credit terms of 1/15,n/60 means that the customer will get a 15% discount if they pay with 60 days.
A)True
B)False
16
A one-column sales journal may be used to record
A)sales of supplies on account.
B)sales of goods on account.
C)sales of goods for cash.
D)all of these.
E)none of these.
17
A single summarizing account in the general ledger, representing all the accounts in a particular subsidiary ledger, is referred to as
A)a response account.
B)a controlling account.
C)a special account.
D)a summary account.
E)none of these.
18
A controlling account can be found in
A)the source documents.
B)the accounts receivable subsidiary ledger.
C)the general ledger.
D)all of these.
E)none of these.
19
The purpose of an accounts receivable ledger is
A)to provide information for customers who call.
B)to provide detailed information to management concerning accounts receivable accounts.
C)to provide information to be used in preparing a schedule of accounts receivable.
D)all of these.
E)none of these.
20
If a customer purchases goods for $560 on account and later is issued a credit memorandum to receive credit for the return of $160 of goods, then the balance due is
A)$160.
B)$720.
C)$400.
D)$560.
E)none of these.
21
The total of the schedule of accounts receivable must equal
A)the balance of the Accounts Receivable controlling account.
B)the total of all sales for the month.
C)sales on account less cash sales for the month.
D)the total of the sales on account for the month.
E)none of these.
22
The Sales Returns and Allowances account is classified as a(n)
A)revenue account.
B)contra-revenue account.
C)expense account.
D)asset account.
E)liability account.
23
When merchandise previously sold is returned for credit, the journal entry is
A)debit Sales and credit Accounts Receivable.
B)debit Accounts Receivable and credit Sales Returns and Allowances.
C)debit Sales Returns and Allowances and credit Accounts Receivable.
D)debit Sales Returns and Allowances and credit Accounts Payable.
E)none of these.
24
The schedule of accounts receivable shows
A)a list of sales returns for the month.
B)a list of the balances of charge customer accounts.
C)a list of individual sales.
D)total sales for the month.
E)none of these.
25
The credit terms 2/10, n/40 mean
A)If the customer pays within 2 days, he can take a discount of 10%, otherwise the net amount is due in 40 days.
B)If the customer pays within 8 days, he can take a discount of 40%,
C)If the customer pays within 10 days, he can take a discount of 2%, otherwise the net amount is due in 30 days
D)If the customer pays within 10 days, he can take a discount of 2%, otherwise the net amount is due in 40 days
E)none of these.
26
Sold merchandise on credit to ABC Inc.; for $1,400 plus $44 sales tax. The journal entry to record this transaction would include
A)a debit to Sales Tax Payable for $44.
B)a debit to Cash for $1,444.
C)a debit to Sales $1,400.
D)a credit to Sales Tax Payable for $44.
E)none of these.
27
To record a customer's return of merchandise originally purchased on credit for $1,400 plus $44 sales tax. The journal entry to record this transaction would include
A)a debit to Sales for $1,444.
B)a credit to Accounts Receivable for $1,444.
C)a debit to Sales $1,400.
D)a credit to Sales Tax Payable for $44.
E)none of these.
28
When payment is received from a customer within the discount period of the following credit terms 2/10,n/30, the journal entry to record the receipt would include
A)a debit Sales.
B)a credit to Cash.
C)a debit to Sales Discounts
D)a debit to Accounts Receivable.
E)none of these.
29
A cash receipts journal is typically used to record cash receipts from all of the following EXCEPT
A)cash receipts from credit sales
B)cash receipts from cash sales
C)cash receipts from other sources
D)it records receipts from all of the above sources.
E)none of these.
30
The Sales Discounts account is classified as a(n)
A)revenue account.
B)contra-revenue account.
C)expense account.
D)asset account.
E)liability account.





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