Net sales equal
A) gross sales.
B) gross sales - sales returns and allowances.
C) gross sales - sales returns and allowances - sales discounts.
D) sales discounts.
12) The normal balance of the Sales Returns and Allowances account is
A) a credit.
B) a debit.
D) It doesn't have a normal balance.
13) The side that increases the balance of the Sales Discount account is
A) a credit.
B) a debit.
D) It does not have a normal balance.
14) Hardware Restoration reports net sales of $60,000. If sales returns and allowances are $11,000 and sales discounts are $1,500, what are gross sales?
15) R&R Lumber reports gross sales of $80,000. If sales returns and allowances are $12,000 and sales discounts are $3,700, what are the net sales?
16) Kristi's pottery sold 250 tiles at $25.00 each to a charge customer, terms 1/10, n/30. Which entry is required to record this transaction?
A) Debit Cash for $6,250; credit Tile Sales for $6,250
B) Debit Accounts Receivable for $6,187.50; credit Tile Sales for $6,187.50
C) Debit Accounts Receivable for $6,187.50; debit Sales Discount for $62.50, and credit Tile Sales for $6,250
D) Debit Accounts Receivable for $6,250; credit Tile Sales for $6,250
17) Lisa's Blankets and Bedding had a sale of $375 to a charge customer, terms 1/15, n/30. Lisa should record this transaction as follows:
A) debit Accounts Receivable $375; credit Sales $375.
B) debit Cash $375; credit Sales $375.
C) debit Accounts Receivable $371.25; debit Sales Discounts $3.75; credit Sales $375.
D) debit Sales $375; credit Accounts Receivable $375.
18) Urban Camping sold goods for $250 to a charge customer. The customer returned for credit $80 worth of goods. Which entry is required to record the return transaction?
A) Debit Sales Returns and Allowances $80; credit Accounts Receivable for $80
B) Debit Sales Returns and Allowances for $80; credit Sales for $80
C) Debit Sales $250; credit Sales Returns and Allowances $250
D) Debit Accounts Receivable $170; credit Sales Returns and Allowances for $170
19) Monica's Closet received payment in full for goods sold within the discount period on a $480 sales invoice, terms 2/10, n/30. Which entry records this transaction?
A) Debit Accounts Receivable; credit Sales for $480
B) Debit Cash; credit Accounts Receivable for $480
C) Debit Cash for $470.40, debit Sales Discount for $9.60; and credit Sales for $480
D) Debit Cash for $470.40, debit Sales Discount for $9.60; and credit Accounts Receivable for $480
20) Medeco sold goods for $75 to a charge customer. The customer returned for credit $25 worth of goods. Terms of the sale were 1/10, n/30. If the customer pays the amount owed within the discount period, what is the amount the customer should pay?
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