Home / Questions / A company returned merchandise to a supplier because it did not meet their
A company returned merchandise to a supplier because it did not meet their specifications. This transaction would be recorded in which of the following journals?
A. Sales journal
B. Purchases journal
C. Cash disbursements journal
D. Cash receipts journal
E. General journal
102. A list of all the accounts in the accounts receivable ledger with their balances and the total is a(n):
A. Chart of accounts
B. Controlling account
C. Schedule of accounts receivable
D. Subsidiary ledger
E. Special journal
103. The Accounts Payable account in the general ledger is:
A. A controlling account for the subsidiary accounts payable ledger.
B. The account that controls the purchases journal.
C. The subsidiary account to the purchases journal.
D. Part of a special journal.
E. Part of a subsidiary ledger.
104. After posting is completed, there may be an error if:
A. The sum of the customer account balances does not equal the total in the sales journal.
B. The sum of the accounts receivable ledger does not equal the balance in the Sales account.
C. The sum of the customer account balances does not equal the Accounts Receivable controlling account balance.
D. The balance in the sales journal does not equal the Accounts Receivable account balance.
E. The sum of the accounts receivable ledger does not equal the balance in the sales journal.
105. Assume that a company using a purchases journal made an error in totaling the journal's columns. The error should be discovered:
A. When the purchases journal is posted to the general ledger.
B. When the trial balance is prepared.
C. When the total of the schedule of accounts payable is compared with the balance of the Accounts Payable account.
D. When the creditors receive their payments.
E. When the financial statements are prepared.
106. The main difference in the sales journal under the perpetual and periodic inventory system is:
A. The column to record cost of goods sold and inventory amounts sold that is used under the perpetual system but not the periodic.
B. The sales tax receivable column that is used under the perpetual system but not the periodic.
C. The sales tax payable column that is used under the perpetual system but not the periodic.
D. The accounts receivable column that is used under the perpetual system but not the periodic.
E. The column for recording cash that is used under the perpetual system but not the periodic.
107. Argyle Company uses a cash receipts journal (periodic system) as shown below:
|
Date |
Account Credited |
Explanation |
Cash Dr. |
Sales Disc. Dr. |
Accounts Receivable Cr. |
Sales Cr. |
Other Accounts Cr. |
|
|
|
|
|
|
|
|
|
How would the following transactions be recorded in this cash receipt journal?
? 12/10 Sold merchandise to Sock Company for $9,260 cash (cost is $5,556)
? 12/11 Sold merchandise on credit to Gardner, Inc, invoice no. 873, for $7,000 (cost is $4,200). Terms are 2/10, n/30.
A.
|
Date |
Account Credited |
Explanation |
Cash Dr. |
Sales Disc. Dr. |
Accounts Receivable Cr. |
Sales Cr. |
Other Accounts Cr. |
|
12/10 |
Sales |
Cash Sales |
9,260 |
|
|
|
|
|
12/11 |
Sales |
Credit Sales |
|
|
7,000 |
|
|
B.
|
Date |
Account Credited |
Explanation |
Cash Dr. |
Sales Disc. Dr. |
Accounts Receivable Cr. |
Sales Cr. |
Other Accounts Cr. |
|
12/10 |
Sales |
Cash Sales |
9,260 |
|
|
9,260 |
|
|
12/11 |
Sales |
Credit Sales |
|
140 |
6,860 |
|
|
C.
|
Date |
Account Credited |
Explanation |
Cash Dr. |
Sales Disc. Dr. |
Accounts Receivable Cr. |
Sales Cr. |
Other Accounts Cr. |
|
12/10 |
Sales |
Cash Sales |
9,260 |
|
|
9,260 |
|
|
12/11 |
Sales |
Credit Sales |
|
140 |
6,860 |
7,000 |
|
D.
|
Date |
Account Credited |
Explanation |
Cash Dr. |
Sales Disc. Dr. |
Accounts Receivable Cr. |
Sales Cr. |
Other Accounts Cr. |
|
12/10 |
Sales |
Cash Sales |
9,260 |
|
|
|
9,260 |
|
|
|
|
|
|
|
|
|
E.
|
Date |
Account Credited |
Explanation |
Cash Dr. |
Sales Disc. Dr. |
Accounts Receivable Cr. |
Sales Cr. |
Other Accounts Cr. |
|
12/10 |
Sales |
Cash Sales |
9,260 |
|
|
9,260 |
|
|
|
|
|
|
|
|
|
|
108. A company uses a cash receipts journal (periodic system) as shown below:
|
Date |
Account Credited |
Explanation |
Cash Dr. |
Sales Disc. Dr. |
Accounts Receivable Cr. |
Sales Cr. |
Other Accounts Cr. |
|
|
|
|
|
|
|
|
|
|
|
|
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How would the following transactions be recorded in this cash receipts journal?
12/10 Sold merchandise to Cat Company for $7,500 cash (cost is $4,250)
12/11 Sold merchandise on credit to Dog, Inc, Invoice No. 852, for $4,000 (cost is $2,200) Terms are 2/10, n/30.
A.
|
Date |
Account Credited |
Explanation |
Cash Dr. |
Sales Disc. Dr. |
Accounts Receivable Cr. |
Sales Cr. |
Other Accounts Cr. |
|
12/10 |
Sales |
Cash Sales |
7,500 |
|
|
|
|
|
12/11 |
Sales |
Credit Sales |
|
|
4,000 |
|
|
B.
|
Date |
Account Credited |
Explanation |
Cash Dr. |
Sales Disc. Dr. |
Accounts Receivable Cr. |
Sales Cr. |
Other Accounts Cr. |
|
12/10 |
Sales |
Cash Sales |
7,500 |
|
|
7,500 |
|
|
12/11 |
Sales |
Credit Sales |
|
80 |
3,920 |
|
|
C.
|
Date |
Account Credited |
Explanation |
Cash Dr. |
Sales Disc. Dr. |
Accounts Receivable Cr. |
Sales Cr. |
Other Accounts Cr. |
|
12/10 |
Sales |
Cash Sales |
7,500 |
|
|
|
7,500 |
|
12/11 |
Sales |
Credit Sales |
|
80 |
3,920 |
4,000 |
|
D.
|
Date |
Account Credited |
Explanation |
Cash Dr. |
Sales Disc. Dr. |
Accounts Receivable Cr. |
Sales Cr. |
Other Accounts Cr. |
|
12/10 |
Sales |
Cash Sales |
7,500 |
|
|
|
7,500 |
|
|
|
|
|
|
|
|
|
E.
|
Date |
Account Credited |
Explanation |
Cash Dr. |
Sales Disc. Dr. |
Accounts Receivable Cr. |
Sales Cr. |
Other Accounts Cr. |
|
12/10 |
Sales |
Cash Sales |
7,500 |
|
|
7,500 |
|
|
|
|
|
|
|
|
|
|
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