accounting chapter 10 review
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Accounting Chapter 10 Review. Journalizing Sales and Cash Receipts Using Special Journals. A special journal used to record only sales of merchandise on account. Sales Journal. A cash discount on sales taken by a customer. Sales Discount. - PowerPoint PPT PresentationTRANSCRIPT
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AccountingChapter 10
Review
Journalizing Sales and Cash Receipts Using Special Journals
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A special journal used to record only sales of merchandise on account
Sales Journal
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A cash discount on sales taken by a customer.
Sales Discount
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The report that summarizes the cash and credit card sales of a point-of-sale terminal
Terminal Summary
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A sale in which a credit card is used for the total amount of the sale at the time of the transaction
Credit Card Sale
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A special journal used to record only cash receipt transactions
Cash receipts journal
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A form prepared by the vendor showing the amount deducted for returns and allowances
Credit Memorandum
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A computer used to collect, store, and report all the information of a sales transaction
Point-of-sale Terminal
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The process of preparing a batch report of credit card sales from a point-of-sale terminal
Batching Out
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Credit allowed a customer for part of the sales price of merchandise that is not returned, resulting in a decrease in the vendor’s accounts receivable.
Sales Allowance
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A report of credit card sales produced by a point-of-sale terminal
Batch Report
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TRUE or FALSE?TRUE or FALSE?
When cash is received for a sale on account within the discount period, the amount credited to Accounts Receivable is reduced by the amount of the discount.
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TRUE or FALSE?TRUE or FALSE?Regardless of when merchandise is sold, revenue should be recorded when cash is received.
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TRUE or FALSE?TRUE or FALSE?Point-of-sale terminals use UPC symbols to obtain the description and price of merchandise sold.
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TRUE or FALSE?TRUE or FALSE?Because Sales Discount is a contra account to Sales, it has a normal credit balance.
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TRUE or FALSE?TRUE or FALSE?Purchases and sales of merchandise are the two major activities of a merchandising business.
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TRUE or FALSE?TRUE or FALSE?Cash is proved when the total of the Cash Debit column of a cash receipts journal equals the next unused check stub.
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TRUE or FALSE?TRUE or FALSE?A terminal summary reports total cash and credit card sales of a point-of-sale terminal.
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TRUE or FALSE?TRUE or FALSE?When a customer is granted credit for merchandise returned, Accounts Receivable is debited.
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TRUE or FALSE?TRUE or FALSE?The amount of sales tax collected is an asset of the business until paid to the state government.
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B.
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D.
E.
Using a terminal summary as a source document for weekly cash and credit card sales is an application of the accounting concept.
Business Entity
Matching Expenses with Revenue
Realization of Revenue
Objective Evidence
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A.
B.
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D.
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The amount of cash received for a sale on account of $1,000.00 plus sales tax of $80 when the cash is received within the 2 percent discount period is.
1062.00
1053.60
1080.00
1058.40
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A.
B.
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D.
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Sales Returns and Allowances is:
A contra expense account
An expense account
A revenue account
A contra Revenue Account
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Sales invoices should be
Numbered in sequence
Used as source documents for sales on account
Prepared in triplicate
All of the above
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A.
B.
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D.
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The amount of sales tax on a sale is calculated as the price of goods
Plus the sales tax rate
Divided by the sales tax rate
Minus the sales tax rate
Times the sales tax rate
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A.
B.
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D.
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For a sale on account of $1,000.00 plus sales tax of $80.00, the amount recorded in the Accounts Receivable Debit column of a sales journal is
$1,000.00
$920.00
$80.00
$1,080.00
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When merchandise is sold on account and sales tax is also collected,
The sales tax is not reported
Sales is debited for the price of the goods.
Accounts Receivable is credited for the total sale and sales tax
The accounts receivable account balance is increased.
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B.
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Sales discounts are recorded in
Batch Report
General Journal
Sales Journal
Cash Receipts Journal