Accounting Chapter 10, 11e

Which journal would this transaction be recorded:  Sold merchandise on Account to Sugar Sweet Bakery. 

• Sales Journal 
• General Journal 
• Cash Payments Journal 
• Cash Receipts Journal 

Which journal would this transaction be recorded in:  Recorded cash and credit card sales, plus sales tax.

• Sales Journal 
• Cash Payments Journal 
• Cash Receipts Journal 
• General Journal 

What would be the credit part of this transaction?  Received cash on account from Bob Smith. 

• Cash 
• Sales 
• Sales Discount 
• Accounts Receivable

What would be the debit part of this transaction?  Recorded cash and credit card sales, plus sales tax. 

• Cash 
• Sales 
• Sales Returns and Allowances 
• Sales Tax Payable 

An account that reduces a related account on the financial system is a: 

• Special Account 
• Contra Account 
• Nonexistent Account 
• Cash Account 

After the cash receipts journal is proved at the end of the month, cash is proved. 

• True 
• False 

Sales tax rates are usually stated as a percentage of sales. 

• True 
• False 

The revenue account Sales has a normal credit balance. 

• True 
• False 

The liability account Sales Tax Payable has a normal debit balance. 

• True 
• False 

The account Sales Discount increases sales. 

• True 
• False