WorksheetsChapter 14 - Accounting for Sales and Cash Receipts
Total questions: 14
Worksheet time: 7mins
Name
Class
Date
1.
What is the controlling account for a company's customers?
a)
Subsidiary ledger
b)
General Ledger
c)
Accounts Receivable
d)
Markup Ledger
2.
Regardless of when payment is received, the revenue should be recorded when a sale is made, not on the date cash is received.
a)
True
b)
False
3.
The amount of sales tax collected is an expense of operating a business.
a)
True
b)
False
4.
Credit card and debit card sales are treated as cash sales because receives its cash in a very short time.
a)
True
b)
False
5.
Sales Tax Payable has a normal debit balance.
a)
True
b)
False
6.
Maintaining a separate account for sales discounts provides business managers with information to evaluate whether a sales discount is a cost-effective method.
a)
True
b)
False
7.
When a sales discount is taken, a customer pays less cash than the invoice amount previously recorded in the sales account.
a)
True
b)
False
8.
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:
a)
debit Cash, $161; credit Sales, $150, Sales Tax Payable, $11.
b)
debit Cash, $161; credit Accounts Receivable/Low Rent Tours, $161.
c)
debit Accounts Receivable/Low Rent Tours, $161; credit Cash, $161.
d)
debit Sales, $150, Sales Tax Payable, $11; credit Cash, $161.
9.
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:
a)
debit Sales, $45, Sales Tax Payable, $3; credit Accounts Receivable/Jet Set Travel, $48.
b)
debit Accounts Receivable/Jet Set Travel, $48; credit Sales $45, Sales Tax Payable, $3.
c)
debit Accounts Receivable/Jet Set Travel, $48; credit Cash, $48.
d)
debit Cash, $48; credit Sales, $45, Sales Tax Payable, $3.
10.
Tricky Ricky's Appliances sold merchandise on account to Smith Builders for $880, plus sales tax of $40. The journal entry for Tricky Ricky's Appliances to record this transaction is:
a)
debit Accounts Payable/Smith Builders, $920; credit Sales, $880, Sales Tax Payable, $40.
b)
debit Accounts Receivable/Smith Builders, $920; credit Sales, $880, Sales Tax Payable, $40.
c)
debit Sales, $880, Sales Tax Payable, $40; credit Accounts Payable/Smith Builders, $920.
d)
debit Sales, $880, Sales Tax Payable, $40; credit Accounts Receivable/Smith Builders, $920.
11.
The Aquatic Kingdom sold Quiet Pets some newly hatched goldfish on account for $145, plus sales tax of $10. The journal entry for the Aquatic Kingdom to record this transaction is:
a)
debit Accounts Receivable/Quiet Pets, $155; credit Sales, $145, Sales Tax Payable, $10.
b)
debit Sales, $145, Sales Tax Payable, $10; credit Accounts Receivable/Quiet Pets, $155.
c)
debit Accounts Receivable/Quiet Pets, $155; credit Purchases, $155.
d)
debit Purchases, $155; credit Accounts Receivable/Quiet Pets, $155.
12.
The Hot Spot Donut Shop sold doughnuts on account to The Corner Church for $50. The journal entry for Hot Spot Donut Shop to record this transaction is:
a)
debit Accounts Receivable/The Corner Church, $50; credit Purchases, $50.
b)
debit Purchases, $50; credit Accounts Receivable/The Corner Church, $50.
c)
debit Accounts Receivable/The Corner Church, $50; credit Sales $50.
d)
debit Sales, $50; credit Accounts Receivable/The Corner Church, $50.
13.
Just Pens sold office supplies to Sunny Day Preschool for $25 cash. The journal entry for Just Pens to record this transaction is:
a)
debit Cash, $25; credit Sales, $25.
b)
debit Accounts Receivable/Sunny Day Preschool, $25; credit Sales $25.
c)
debit Accounts Receivable/Sunny Day Preschool, $25; credit Cash, $25.
d)
debit Cash, $25; credit Accounts Receivable/Sunny Day Preschool, $25.
14.
City Utilities received $118 cash from Cody Waters for payment on account. Cody Waters took a $3 discount for paying early. The journal entry for City Utilities to record this transaction is:
a)
debit Sales Discounts, $3, Accounts Receivable/Cody Waters, $115; credit Cash, $118.
b)
debit Cash, $118; credit Sales Discounts, $3, Accounts Receivable/Cody Waters, $115.
c)
debit Accounts Receivable/Cody Waters, $121; credit Cash, $118, Sales Discounts, $3.
d)
debit Cash, $118, Sales Discounts, $3; credit Accounts Receivable/Cody Waters, $121.
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