Question :
31) Referring to Table 7-1, when will the cash receipt : 1212675
31) Referring to Table 7-1, when will the cash receipt be posted to Carter Company’s account receivable account in the accounts receivable subsidiary ledger?
A) on April 30, because special journals are always posted monthly
B) on April 1, because subsidiary ledgers are posted daily
C) anytime, it doesn’t matter when subsidiary ledgers are posted
D) at the end of the next accounting period
32) Referring to Table 7-1, how would this transaction be recorded in Pro’s cash receipts journal if payment is made on April 15?
A) debit Cash $2,800; credit Accounts Receivable-Carter Company $3,000
B) debit Cash $2,800; credit Accounts Receivable-Carter Company $2,800
C) debit Cash $2,800; credit Accounts Receivable-Carter Company $3,000 and Sales Discounts $56
D) debit Accounts Receivable-Carter Company $3,000; credit Cash $2,744 and Sales Discounts $56
33) On April 10, Salt Company received a cheque from Pepper Company for payment of an invoice dated March 24 for $2,000 with credit terms of 2/10 n/30. On March 28, Pepper had returned $200 of the merchandise because it was defective. How would this transaction be recorded in Salt’s cash receipts journal?
A) debit Cash $2,000; credit Accounts Receivable-Pepper Company $2,000
B) debit Cash $1,800; credit Accounts Receivable-Pepper Company $1,800
C) debit Cash $1,764; credit Accounts Receivable-Pepper Company $1,764
D) debit Cash $1,764 and Sales Discounts $36; credit Accounts Receivable-Pepper Company $1,800
34) The end-of-month balance in Dryer Company’s cash receipts journal cash column is $22,630. How will this column be posted?
A) The total will be posted to the cash account as a credit.
B) The total will be posted to the cash account as a debit.
C) The individual amounts are posted on a daily basis.
D) The total is not posted.
35) The sales journal contains columns for:
A) accounts receivable/sales revenue and supplies/inventory.
B) accounts receivable/sales revenue and inventory/accounts payable.
C) accounts receivable/sales and cost of goods sold/inventory.
D) accounts receivable/inventory and cost of goods sold/accounts payable.
36) Parker Industrial Corp. uses a sales journal to record each sale transaction. At the end of January, the sales journal was as you see below:
Sales Journal
Date
Invoice #
Customer
Post
Ref.
Accts Rec DR/
Sales Rev CR
COGS DR/
Inventory CR
Jan 12
3077
Fogelin, A.
$2,400
$ 960
19
3078
Faass Products Co.
1,012
800
24
3079
Lanier Service Inc.
444
201
29
3080
June, L.
709
366
31
Total
$4,565
$2,327
When the sales journal is posted to the general ledger, which entries are made?
A) Debit Accounts receivable $4,565; credit Inventory $2,327
Debit Sales revenue $4,565; credit COGS $2,327
B) Debit Sales revenue $4,565; credit Accounts receivable $4,565
Debit Inventory $2,327; credit COGS $2,327
C) Debit Accounts receivable $4,565; credit Sales revenue $4,565;
Debit COGS $2,327; credit Inventory $2,327
D) Debit Accounts receivable $2,327; credit Inventory $2,327
Debit COGS $4,565; credit Inventory $4,565
37) Which of the following best describes the action known as balancing the ledgers?
A) Totaling the subsidiary account balances and cross checking against the main account balance
B) Making sure that the ending balance in Sales is equal to the ending balance in Accounts receivable
C) Identifying the differences between the cash balance in the ledger and the bank statement
D) Totaling the expense account balances and cross checking against total expenses shown on the income statement
38) Special journals are particularly efficient for:
A) similar, repetitive transactions.
B) unusual transactions.
C) transactions that require recording in 3 or more accounts.
D) transactions that are corrections of previous errors.
Table 7-6
Provincewide Milling Company uses a sales journal. On June 2, the sales journal appears as you see below.
Sales Journal
Date
Invoice #
Customer
Post
Ref.
Accts Rec DR/
Sales Rev CR
COGS DR/
Inventory CR
June 2
909
Richardson Products
$ 4,200
$ 1,090
Total
Other sales that took place in June are as follows:
Inv #
Sales Amount
Customer
Cost of Goods Sold
910
$ 880
Anton, Michael
$390
911
1,120
A1 Repairs
560
912
500
Thompson, Al
220
39) Refer to Table 7-6, at the end of the month, what entry was made to accounts receivable?
A) Credit $6,700
B) Debit $6,700
C) Debit $2,260
D) Credit $2,260
40) Refer to Table 7-6, at the end of the month, what entry was made to inventory?
A) Credit $2,260
B) Debit $2,260
C) Debit $6,700
D) Credit $6,700
