Question : Multiple Choice 55. Which of the following best describes credit sales? a. : 1255917

 

Multiple Choice

 

 

55. Which of the following best describes credit sales?

a. Cash sales to customers that are new to the company.

b. Sales to customers using credit cards.

c. Sales to customers on account.

d. Sales with a high risk that the customer will return the product.

 

 

56. Credits sales are recorded as:

a. Debit Cash, credit Unearned Revenue.

b. Debit Service Revenue, credit Accounts Receivable.

c. Debit Cash, credit Service Revenue.

d. Debit Accounts Receivable, credit Service Revenue.

 

 

57. A company provides services on account.  Indicate how this transaction would affect the following five financial statement items:

                                 Stockholders’

Assets   Liabilities      Equity      Revenues   Expenses

a.Increase  Decrease       Increase     Decrease   No effect

b.Increase  No effect     Increase     Increase   Decrease

c.Increase  No effect      Increase     Increase   No effect

d.No effectNo effectNo effectNo effectNo effect

 

 

58. Lewis Inc. had the following information taken from various accounts for 2015:

Sales discounts

$41,000

Unearned revenues

$32,000

Total sales

$459,000

Purchase discounts

$15,000

Sales allowances

$35,000

Accounts receivable

$205,000

What was Lewis Inc.’s net revenues in 2015?

a. $368,000.

b. $434,000.

c. $383,000.

d. $437,000.

 

 

59. On July 8, Ray Inc. sold 100 printers to Office Rental Company at $600 each and offered a 2% discount for payment within 10 days. On July 15, Office Rental Company paid the full amount in cash. What should Ray Inc. record on July 15?

a. Cash60,000

Accounts Receivable60,000

 

b. Cash58,800

Accounts Receivable58,800

 

c. Cash58,800

    Sales Discounts  1,200

Accounts Receivable60,000

 

d. Cash60,000

Sales Discounts  1,200

Sales Revenue58,800

 

 

60. Eric Company has the following information:

Total revenues

$860,000

Sales returns and allowances

$50,000

Sales discounts

$30,000

Ending inventory

$100,000

What is the amount of net revenues for Eric Company?

a. $330,000.

b. $230,000.

c. $680,000.

d. $780,000.

 

 

61. On March 17, Jackal Lumber sold building materials to Fredo Limited for $15,000 with terms of 3/10, net 20.  What amount did Jackal record as revenue on March 25 when Fredo paid for the building materials?

a. $15,000.

b. $14,550.

c. $15,450.

d. $0.

 

 

62. Garber Plumbers offers a 20% trade discount when providing $2,000 or more of plumbing services to its customers.  In March 2015, Garber provided $4,000 of plumbing services to Red Oak, Inc. and $1,500 of services to Cyril, Inc.  Each of these customers was granted credit terms of 2/10, net 30.  If both customers paid for the plumbing services within the discount period, what was the net revenues figure for these two transactions?

a. $5,500.

b. $4,312.

c. $4,486.

d. $4,606.

 

 

63. Boynton Jewelers reported the following amounts at the end of the year: total sales = $550,000; sales discounts = $12,000; sales returns = $44,000; sales allowances = $17,000.  What was the company’s net revenues for the year? 

a. $489,000.

b. $485,000.

c. $477,000.

d. $499,000.

 

 

64. A company collects a customer’s account within the discount period.  Indicate how this transaction would affect the following five financial statement items:

                                 Stockholders’

AssetsLiabilities      Equity      Revenues   Expenses

a.Decrease  No effect      Decrease     Decrease   No effect

b.Increase  No effect      Increase     Increase   Decrease

c.Increase  No effect      Increase     Increase   No effect

d.No effect No effect      No effect   No effect  No effect

 

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more