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Net sales equal A) gross sales. B) gross sales - sales returns and allowances. C) gross

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.

C) zero.

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.

C) zero.

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?

A) $49,000

B) $72,500

C) $58,500

D) $47,500

 

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?

A) $95,700

B) $68,000

C) $64,300

D) $76,300

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?

A) $49.50

B) $69.25

C) $75.00

D) $50.00

Dec 06 2019 Read more Less More

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