Chapter 16 - Special Journals: Sales and Cash Receipts

Down the River Canoe sold merchandise for cash to Low Rent Tours for $150, plus sales tax of $11. The journal entry for Down the River Canoe to record this transaction is:

• debit Cash, $161; credit Sales, $150, Sales Tax Payable, $11.
• debit Cash, $161; credit Accounts Receivable/Low Rent Tours, $161.
• debit Accounts Receivable/Low Rent Tours, $161; credit Cash, $161.
• debit Sales, $150, Sales Tax Payable, $11; credit Cash, $161.

Quick Supply sold office supplies for cash to Jet Set Travel for $45, plus sales tax of $3. The journal entry for Quick Supply to record this transaction is:

• debit Sales, $45, Sales Tax Payable, $3; credit Accounts Receivable/Jet Set Travel, $48.
• debit Accounts Receivable/Jet Set Travel, $48; credit Sales $45, Sales Tax Payable, $3.
• debit Accounts Receivable/Jet Set Travel, $48; credit Cash, $48.
• debit Cash, $48; credit Sales, $45, Sales Tax Payable, $3.

Food Supply received $320 cash from Pancake Hut for payment on account. The journal entry for Food Supply to record this transaction is:

• debit Accounts Receivable/Pancake Hut, $320; credit Cash, $320.
• debit Cash, $320; credit Accounts Receivable/Pancake Hut, $320.
• debit Sales, $320; credit Accounts Receivable/Pancake Hut, $320.
• debit Accounts Receivable/Pancake Hut, $320; credit Sales, $320.

Selling merchandise on account will be recorded in the

• Sales Journal

• Cash Receipts Journal

• Cash Payment Journal

• Purchases Journal

When a transaction is recorded within the sales journal, which account is not affected?

• Sales Discount Account

• Sales Account

• Accounts Receivable Account

• Cash Account

What is the cash receipts journal used for?

• Journalize the receipt of an accounts receivable

• journalize the payment of an accounts payable

• journalizing supplies expense

• journalize the payment for insurance

What is the controlling account for a company's customers?

• Subsidiary ledger

• General Ledger

• Accounts Receivable

• Markup Ledger

At the end of the month, which of the following will you complete first within the special journal?

• Posting

• Totaling

• Proving

• Ruling

Which journal is used to record cash and credit card sales?

• Purchases Journal

• Sales Journal

• Cash Payment Journal

• Cash Receipts Journal

When recording cash and credit card sales, what do you enter in the account title column?

• Company name

• Customer name

• Check mark

• Question mark