5) Received payment, within the discount period, for merchandise sold previously. This will be recorded with:

A) a credit to an asset account.

B) a debit to a liability account.

C) a debit to Capital.

D) None of these are correct.

 

6) Sue’s Jewelry sold 30 necklaces for $25 each to a credit customer. The invoice included a 6% sales tax and payment terms of 2/10, n/30. In addition, 5 necklaces were returned prior to payment. The entry to record the payment would include:

A) a credit to Cash for $625.00.

B) a credit to Cash for $662.50.

C) a credit to Accounts Receivable for $625.00.

D) a credit to Accounts Receivable for $662.50.

7) Determine the amount to be paid within the discount period for a previous sale with an invoice price of $10,000, subject to credit terms of 1/10, n/30.

$ ________

 

8) Determine the amount of cash collected on a credit sale with a price of $80,000 and credit terms of 1/10, n/30, assuming the payment was after the discount period had expired.

$ ________

 

9) Determine the amount of cash collected at the time of making a sale of $7,500 worth of merchandise subject to a 6% sales tax.

$ ________

 

10) Determine the amount of cash collected at the time of making a sale of $1,000 worth of merchandise subject to a 6% sales tax.

$ ________

 

11) Determine the amount of cash collected on a credit sale in the amount of $4,500, subject to a 6% sales tax when $500 worth of merchandise has already been returned for credit.

$ ________

12) Explain how the record keeping differs between a cash sale and a credit sale.

 

 

 



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *