11) Leno Company sells goods to the Fallon Company for $10,000. It offers credit terms of 5/10, n/30. If Fallon Company pays the invoice within the discount period, Leno Company will record a debit to Cash in the amount of:
A) $0.
B) $9,000.
C) $9,500.
D) $10,000.
12) A company has gross revenue of $500,000; sales discounts of $2,500; and sales returns and allowances of $3,000. Net revenue is:
A) $494,500.
B) $497,000.
C) $497,500.
D) $500,000.
13) On December 1, Macy Company sold merchandise with a selling price of $1,000 on account to Mrs. Jorgensen, with terms 2/10, n/30. Ignoring Cost of Goods Sold, what journal entry did Macy Company prepare on December 1?
A) Debit Cash for $1,000 and credit Accounts Receivable for $1,000
B) Debit Accounts Receivable for $1,000 and credit Cash for $1,000.
C) Debit Accounts Receivable for $1,000 and credit Sales Revenue for $1,000.
D) Debit Sales Revenue for $1,000 and credit Accounts Receivable for $1,000.
14) On December 2, a customer returned merchandise with a selling price of $500 purchased on account to a department store. Ignoring Cost of Goods Sold, what journal entry did the department store prepare?
A) Debit Sales Revenue for $500 and credit Accounts Receivable for $500.
B) Debit Sales Revenue for $500 and credit Cash for $500.
C) Debit Sales Revenue for $500, credit Sales Discount for $10, and credit Cash for $490.
D) Debit Sales Returns and Allowances for $500 and credit Accounts Receivable for $500.
15) On December 1, Macy Company sold merchandise with a selling price of $1,000 on account to Mrs. Jorgensen, with terms 2/10, n/30. Mrs. Jorgensen paid the amount due on December 9. What journal entry did Macy Company prepare on December 9?
A) Debit Cash for $1,000 and credit Sales Revenue for $1,000.
B) Debit Sales Revenue for $1,000 and credit Cash for $1,000.
C) Debit Sales Revenue for $1,000, credit Sales Discount for $20, and credit Cash for $980.
D) Debit Cash for $980, debit Sales Discounts for $20 and credit Accounts Receivable for $1,000.
16) On December 1, Macy Company sold merchandise with a selling price of $1,000 on account to Mrs. Jorgensen, with terms 2/10, n/30. On December 3, Mrs. Jorgensen returned merchandise with a selling price of $500. Mrs. Jorgensen paid the amount due on December 9. What journal entry did Macy Company prepare on December 9?
A) Debit Cash for $500 and credit Sales Revenue for $500.
B) Debit Sales Revenue for $500 and credit Cash for $500.
C) Debit Sales Revenue for $500, credit Sales Discount for $10 and credit Cash for $490.
D) Debit Cash for $490, debit Sales Discounts for $10 and credit Accounts Receivable for $500.
17) On December 1, Macy Company sold merchandise with a selling price of $1,000 on account to Mrs. Jorgensen, with terms 2/10, n/30. On December 3, Mrs. Jorgensen returned merchandise with a selling price of $500. Mrs. Jorgensen paid the amount due on December 19. What journal entry did Macy Company prepare on December 19?
A) Debit Cash for $500 and credit Sales Revenue for $500.
B) Debit Cash for $500 and credit Accounts Receivable for $500.
C) Debit Cash for $490, debit Sales Discounts for $10 and credit Accounts Receivable for $500.
D) Debit Sales Revenue for $490 and credit Cash for $490.