11) The account in which the revenue earned from the sale of merchandise is entered is:
A) Retained Earnings.
B) Sales.
C) Cash.
D) Inventory.
E) Shareholders' Equity.
12) Sara, a customer, purchased $500 of merchandise from Tammy's store. Under the perpetual inventory system, Tammy will record a:
A) debit to Accounts Receivable or to Cash for $500.
B) credit to Accounts Receivable or to Cash for $500.
C) credit to Cost of Goods Sold for $500.
D) debit to Sales for $500.
E) debit to Inventory for $500.
13) Merchandise returned by the customer for a cash refund is called a:
A) sales return.
B) sales allowance.
C) debit memorandum.
D) credit memorandum.
E) purchases return.
14) Costs of Goods Sold includes which of the following?
A) The actual cost of the item
B) Administrative fees
C) Management salaries
D) Depreciation expense
E) Selling expense
15) Under a perpetual inventory system, what accounts are debited and credited when an allowance is granted to a customer by the retailer for minor defective product?
16) Tammy's General Store has cash sales for the week of $5,000 and credit sales of $3,500. What are the debits and the credits to record the week's sales?
17) Sales is a(n) __________ account.
18) On what financial statement does Sales Returns and Allowances appear?
19) Jill buys $775 of merchandise on account from Toys Are Fun. Her customer terms are 3/10, n/45. What is the amount of her discount if she pays within the discount period?
20) Jill buys $775 of merchandise on account from Toys Are Fun. Her customer terms are 3/10, n/45. What is the amount of her discount if she pays within the discount period?
A) $77.50.
B) $23.25
C) $697.50.
D) $0. 00.