Question 1

The Payroll Journal is not considered a special journal.

Accepted Answer

A) True 
 B)False

Question 2

Refer to the Fruit & Company question above. What amount would be debited to the AR control account for the month?

Accepted Answer

The answer of Refer to the Fruit & Company question...

Question 3

A credit memorandum is sent to a customer for the purpose of

Accepted Answer

A)   informing the customer an amount has been added to their account.
B)   informing the customer an amount has been deducted from their account.
C)   informing the customer they are terminated.
D)   to inform the customer their account limit is being increased.

Question 4

Which account is used by management to keep track of possible customer dissatisfaction?

Accepted Answer

A)   Sales Returns and Allowances
B)   Sales Discount
C)   Sales
D)   Cost of Goods Sold

Question 5

A characteristic of a schedule of accounts receivable is that

Accepted Answer

A)   it contains a list of customers' names with balances.
B)   the total is equal to the accounts receivable control account at the end of the month.
C)   it is prepared at the end of the month.
D)   All of these answers are correct.

Question 6

If a credit memorandum is issued, what account will be increased on the seller's books?

Accepted Answer

A)   Accounts Receivable
B)   Accounts Payable
C)   Sales Discount
D)   Sales Returns and Allowances

Question 7

Refer to the Fruit & Company question above. What amount would the WMS Company owe at month end, assuming no payments were received?

Accepted Answer

The answer of Refer to the Fruit & Company question...

Question 8

A customer returned merchandise for credit. This will be recorded with

Accepted Answer

A)   a credit to a liability account.
B)   a debit to a liability account.
C)   a credit to an asset account.
D)   None of these are correct.

Question 9

A characteristic of Sales Returns and Allowances is that

Accepted Answer

A)   it has a debit balance.
B)   it tracks returns from customers.
C)   it is a contra-revenue account.
D)   All of these answers are correct.

Question 10

The balance in the Accounts Receivable account is $2,100 debit. Therefore, the balances in the subsidiary ledger should be $2,100.

Accepted Answer

A) True 
 B)False

Question 11

Zach returned $195 of merchandise to Secret Trails. His original purchase was $400, with terms 1/10, n/30. If Zach pays the balance of his account after the discount period, how much should he pay?

Accepted Answer

A)   $202.95
B)   $205.00
C)   $195.00
D)   $400.00

Question 12

The accounts receivable subsidiary ledger shows the amount owed from each customer.

Accepted Answer

A) True 
 B)False

Question 13

Lisa's Blankets and Bedding had a sale of $375 to a charge customer, terms 1/15, n/30. Lisa should record the sale portion of this transaction as follows:

Accepted Answer

A)   debit Accounts Receivable $375; credit Sales $375.
B)   debit Cash $375; credit Sales $375.
C)   debit Accounts Receivable $371.25; debit Sales Discounts $3.75; credit Sales $375.
D)   debit Sales $375; credit Accounts Receivable $375.

Question 14

The controlling account is found in the subsidiary ledger and it summarizes or controls the general ledger account.

Accepted Answer

A) True 
 B)False

Question 15

Refer to the Fruit & Company question. What is the amount credited to Inventory for the month?

Accepted Answer

The answer of Refer to the Fruit & Company question....

Question 16

An example of a subsidiary ledger is the accounts receivable ledger.

Accepted Answer

A) True 
 B)False

Question 17

Monica's Closet received payment in full for goods sold within the discount period on a $480 sales invoice, terms 2/10, n/30. Which entry records this transaction?

Accepted Answer

A)   Debit Accounts Receivable; credit Sales for $480
B)   Debit Cash; credit Accounts Receivable for $480
C)   Debit Cash for $470.40, debit Sales Discount for $9.60; and credit Sales for $480
D)   Debit Cash for $470.40, debit Sales Discount for $9.60; and credit Accounts Receivable for $480

Question 18

What does a check mark in the PR column of a journal indicate?

Accepted Answer

A)   An amount has been posted to the general ledger.
B)   During the month the subsidiary ledger is updated.
C)   An amount has been posted to the controlling account.
D)   Nothing has to be posted until the end of the month for this transaction.

Question 19

What is the gross profit if 4 units are sold for $50 each and the cost of the sale is $40 per unit?

Accepted Answer

A)   $200
B)   $160
C)   $40
D)   None of these answers are correct.

Question 20

Define and compare the accounts receivable subsidiary ledger with the controlling account, Accounts Receivable.

Accepted Answer

Accounts receivable subsidiary ledger is...

Exam 6: Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Define and compare the accounts receivable subsidiary ledger with the controlling account, Accounts Receivable.

Correct AnswerverifiedAccounts receivable subsidiary ledger is...View AnswerShow Answer

Which account is used by management to keep track of possible customer dissatisfaction?

Correct AnswerverifiedShow Answer

The controlling account is found in the subsidiary ledger and it summarizes or controls the general ledger account.

Correct AnswerverifiedShow Answer

Refer to the Fruit & Company question above. What amount would be debited to the AR control account for the month?

Correct AnswerverifiedShow Answer

What does a check mark in the PR column of a journal indicate?

Correct AnswerverifiedShow Answer

An example of a subsidiary ledger is the accounts receivable ledger.

Correct AnswerverifiedShow Answer

The Payroll Journal is not considered a special journal.

Correct AnswerverifiedShow Answer

A customer returned merchandise for credit. This will be recorded with

Correct AnswerverifiedShow Answer

The accounts receivable subsidiary ledger shows the amount owed from each customer.

Correct AnswerverifiedShow Answer

A characteristic of a schedule of accounts receivable is that

Correct AnswerverifiedShow Answer

Refer to the Fruit & Company question. What is the amount credited to Inventory for the month?

Correct AnswerverifiedShow Answer

The balance in the Accounts Receivable account is $2,100 debit. Therefore, the balances in the subsidiary ledger should be $2,100.

Correct AnswerverifiedShow Answer

Zach returned $195 of merchandise to Secret Trails. His original purchase was $400, with terms 1/10, n/30. If Zach pays the balance of his account after the discount period, how much should he pay?

Correct AnswerverifiedShow Answer

A credit memorandum is sent to a customer for the purpose of

Correct AnswerverifiedShow Answer

A characteristic of Sales Returns and Allowances is that

Correct AnswerverifiedShow Answer

What is the gross profit if 4 units are sold for $50 each and the cost of the sale is $40 per unit?

Correct AnswerverifiedShow Answer

Lisa's Blankets and Bedding had a sale of $375 to a charge customer, terms 1/15, n/30. Lisa should record the sale portion of this transaction as follows:

Correct AnswerverifiedShow Answer

If a credit memorandum is issued, what account will be increased on the seller's books?

Correct AnswerverifiedShow Answer

Refer to the Fruit & Company question above. What amount would the WMS Company owe at month end, assuming no payments were received?

Correct AnswerverifiedShow Answer

Monica's Closet received payment in full for goods sold within the discount period on a $480 sales invoice, terms 2/10, n/30. Which entry records this transaction?

Correct AnswerverifiedShow Answer

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Accounts receivable subsidiary ledger is...
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