51) When a customer returns defective office supplies the Sales Returns and Allowances account will be debited.

 

52) Use the following information to answer the questions below:

 

Sales$75,400

Sales Discount1,500

Sales Returns and Allowances900

Transportation Expense700

 

The Net Sales are ________.

 

53) Compare and discuss a discount period versus a credit period.

54) Determine the amount of net sales given:

gross sales = $200,000

sales discounts = $25,000

sales returns and allowances = $40,000

$ ________

 

55) If cash flow is so important to merchandisers, why do they extend credit to their customers?

 

56) Calculate gross sales:

net sales = $100,000

sales returns and allowances – $25,000

sales discounts – $20,000

accounts receivable – $12,000

 

57) Explain why the account Sales Tax Payable is credited when a sale is made subject to a sales tax?

For each of the following, identify in column 1 the category to which the account belongs, in column 2 the normal balance for the account, and in column 3 the financial statement on which the account balance is reported.

 

58)

 

Column 1

Column 2

Column 3

Sales

 

 

 

 

 

59)

 

Column 1

Column 2

Column 3

Professional Fees Earned

 

 

 

 

 

60)

 

Column 1

Column 2

Column 3

Sales Returns and Allowances

 

 

 

 

 

 

 

 



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