106.The journal entry to record a credit sale is
a.Cash
Sales Revenue
b.Cash
Service Revenue
c.Accounts Receivable
Service Revenue
d.Accounts Receivable
Sales Revenue
107.The Sales Returns and Allowances account is classified as a(n)
a.asset account.
b.contra?asset account.
c.expense account.
d.contra?revenue account.
108.A credit sale of $3,600 is made on July 15, terms 2/10, n/30, on which a return of $200 is granted on July 18. What amount is received as payment in full on July 24?
a.$3,600
b.$3,332
c.$3,400
d$3,528
109.When goods are returned that relate to a prior cash sale,
a.the Sales Returns and Allowances account should not be used.
b.the Cash account will be credited.
c.Sales Returns and Allowances will be credited.
d.Accounts Receivable will be credited.
110.The Sales Returns and Allowances account does
not
provide information to management about
a.inferior merchandise.
b.the percentage of credit sales versus cash sales.
c.inefficiencies in filling orders.
d.errors in billing customers.
111.As an incentive for customers to pay their accounts promptly, a business may offer its customers
a.a sales discount.
b.free delivery.
c.a sales allowance.
d.a sales return.
112.The credit terms offered to a customer by a business firm are 2/10, n/30, which means that
a.the customer must pay the bill within 10 days.
b.the customer can deduct a 2% discount if the bill is paid between the 10th and 30th day from the invoice date.
c.the customer can deduct a 2% discount if the bill is paid within 10 days of the invoice date.
d.two sales returns can be made within 10 days of the invoice date and no returns thereafter.
113.Company A sells ¥8,000 of merchandise on account to Company B with credit terms of 2/10, n/30. If Company B remits a check taking advantage of the discount offered, what is the amount of Company B's check?
a.¥5,600
b.¥7,840
c.¥7,200
d.¥6,400
114.Ball Company sells merchandise on account for ?3,000 to Edds Company with credit terms of 2/10, n/30. Edds Company returns ?600 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check?
a.?2,940
b.?2,952
c.?2,400
d.?2,352
115.Moses Company sells merchandise on account for $6,000 to Lane Company with credit terms of 2/10, n/30. Lane Company returns $900 of merchandise that was damaged, along with a check to settle the account within the discount period. What entry does Moses Company make upon receipt of the check?
a.Cash...............................................5,100
Accounts Receivable.........................................5,100
b.Cash...............................................4,998
Sales Returns and Allowances..................................1,002
Accounts Receivable.........................................6,000
c. Cash...............................................4,998
Sales Returns and Allowances..................................900
Sales Discounts...........................................102
Accounts Receivable.........................................6,000
d.Cash...............................................5,880
Sales Discounts...........................................120
Sales Returns and Allowances..................................900
Accounts Receivable.........................................5,100