Question :
21) The accounts receivable credit column of the cash receipts : 1212674
21) The accounts receivable credit column of the cash receipts journal is:
A) posted in summary only at the end of the month.
B) posted by individual amounts only at the end of the month.
C) not posted.
D) posted in summary at the end of the month and by individual amounts on a daily basis
22) Assuming the use of special journals, the sale of equipment for cash would be recorded in the:
A) sales journal.
B) cash payments journal.
C) cash receipts journal.
D) general journal.
23) Assuming the use of special journals, the sale of merchandise to Jerri Blackwell on account would be recorded in the:
A) general journal.
B) accounts receivable journal.
C) sales journal.
D) cash receipts journal.
24) Assuming the use of special journals, the sale of merchandise to Landon Browning for cash would be recorded in the:
A) cash receipts journal.
B) cash payments journal.
C) general journal.
D) sales journal.
25) Assuming the use of special journals, the borrowing of $80,000 from the bank by signing a note payable would be recorded in the:
A) cash payments journal.
B) sales journal.
C) cash receipts journal.
D) general journal.
26) Gere Company returned defective supplies to a supplier and received a cash refund. Assuming the use of special journals, this entry would be recorded in the:
A) sales journal.
B) cash payments journal.
C) cash receipts journal.
D) general journal.
27) Clooney Enterprises received a tax refund cheque in the mail and immediately deposited it in the bank. Assuming the use of special journals, this entry would be recorded in the:
A) general journal.
B) cash payments journal.
C) cash receipts journal.
D) sales journal.
28) Lee Enterprises received payment within the discount period from a customer who had purchased merchandise on account. The sales invoice was for $2,000, and credit terms were 3/15 n/30. In the cash receipts journal, $1,940 will appear under the:
A) sales revenue credit column.
B) accounts receivable credit column.
C) cash debit column.
D) cash credit column.
29) Rockhill Industries received payment after the expiration of the discount period from a customer who had purchased merchandise on account. The sales invoice was for $3,000, and credit terms were 3/15 n/30. The cost of the merchandise was $1,800. In the cash receipts journal:
A) $3,000 will appear in the sales revenue credit column.
B) $3,000 will appear in the accounts receivable debit column.
C) $3,000 will appear in the accounts receivable credit column.
D) $90 will appear in the sales discounts debit column.
Table 7-1
On April 1, Pro Company received a cheque from Carter Company for payment of an invoice dated March 24 for $3,000 with credit terms of 2/10 n/30. On March 28, Carter had returned $200 of the merchandise because it was defective.
30) Referring to Table 7-1, how would this transaction be recorded in Pro’s cash receipts journal?
A) debit Cash $3,000; credit Accounts Receivable-Carter Company $3,000
B) debit Cash $2,800; credit Accounts Receivable-Carter Company $2,800
C) debit Cash $2,744; credit Accounts Receivable-Carter Company $2,744
D) debit Cash $2,744 and Sales Discounts $56; credit Accounts Receivable-Carter Company $2,800
