Question : 41. Merchandise sold credit for $600 plus 5 percent sales tax. : 1197860

41. Merchandise is sold on credit for $600 plus 5 percent sales tax. The entry in the sales journal will include a debit to Accounts Receivable for 

A. $600.00.

B. $603.50.

C. $605.50.

D. $630.00.

42. In a sales journal used to record taxable sales, the total of the Accounts Receivable column should equal 

A. the sum of the totals of the Sales Tax Payable column and the Sales column.

B. the difference between the total of the Sales Tax Payable column and the total of the Sales column.

C. the total of the Sales column.

D. the total of the Sales Tax Payable column.

43. Which of the following statements is correct? 

A. The sales journal is used for recording both cash sales and credit sales.

B. Since the sales journal is used for a single purpose, there is no need to enter any descriptions.

C. To provide an adequate audit trail, sales on credit should be recorded in both the sales journal and the general journal.

D. The complete information for each sale of merchandise on credit can be recorded on one line of the cash receipts journal.

44. An example of a merchandising company is a 

A. bookstore

B. restaurant

C. hair salon

D. real estate office

45. Which of the following statements is not correct? 

A. Use of a sales journal eliminates repetition in posting individual entries to the Accounts Receivable account in the general ledger.

B. A journal that is used to record only one type of a transaction is called a special journal.

C. The sales slip is the source document for sales on credit transactions.

D. If the firm must collect sales tax on retail transactions, the sales journal should have a Sales Tax Payable Debit column.

46. Which of the following statements is not correct? 

A. Postings to the accounts receivable subsidiary ledger are usually made once a month on the last day of the month.

B. Before any posting to the subsidiary ledger takes place, the equality of the debits and credits recorded in the sales journal are proved by comparing the column totals.

C. Before any posting to the general ledger takes place, the equality of the debits and credits recorded in the sales journal are proved by comparing the column totals.

D. When special journals are used, postings to the accounts receivable account in the general ledger are usually made once a month on the last day of the month.

47. To find the balance due from an individual customer, the accountant would refer to 

A. the sales journal.

B. the Sales account in the general ledger.

C. the accounts receivable subsidiary ledger.

D. the Accounts Receivable account in the general ledger.

48. The entry to record a return by a credit customer of defective merchandise on which no sales tax was charged includes 

A. a debit to Sales and a credit to Accounts Receivable.

B. a debit to Sales and a credit to Sales Returns and Allowances.

C. a debit to Sales Returns and Allowances and a credit to Accounts Receivable.

D. a debit to Accounts Receivable and a credit to Sales Returns and Allowances.

49. If a firm does not have a sales returns and allowances journal, the entries for these transactions are made in 

A. the sales journal.

B. the general journal.

C. the cash receipts journal.

D. the cash payments journal.

50. The Sales Returns and Allowances account is classified as 

A. an asset account.

B. a contra asset account.

C. an expense account.

D. a contra revenue account.