Accounting I Chapter 14

When a sale on account is recorded, the debit side of the journal entry is

• a debit to Accounts Receivable

• a credit to Accounts Receivable

• a debit to cash

• a credit to cash

All of the items of merchandise a business has in stock is referred to as

• stock

• inventory

• merchandise

• goods

A business that sells to the final user (consumer) is a

• wholesaler

• sole proprietor

• retailer

• merchandiser

The normal balance of the Sales account is

• zero

• debit

• credit

• either debit or credit

A ledger that contains detailed data summarized to a controlling account in the general ledger is called a

• diary

• control summary

• subsidiary ledger

• substitute ledger

The sale of merchandise that will be paid for at a later date is called

• cash sale

• sale on account

• taxable sale

• liability

Sales tax collected by the business is recorded as a

• debit to sales tax payable

• debit to sales tax expense

• credit to sales tax expense

• credit to sales tax payable

Any merchandise returned for credit or a cash refund is called a

• sales return

• credit memo

• sales allowance

• cash sale

The time allowed for payment to be made on a credit sale (2/10 n/30) is called its

• time

• allocation

• credit terms

• allowance

A price reduction granted for damaged goods kept by the customer is called a

• sales return

• sales allowance

• cash sale

• credit memo