Flashcards in Chapter 7 Deck (10):
A firm which sells goods that it purchases for re-sale is a?
The Sales Returns and Allowances account is classified as a?
Contra Revenue Account
If Morgan Industries issued a Credit Memorandum 1204 on January 20 for a return of $400 merchandise purchased on account by Doug Bowen, plus 8% sales tax, the credit memorandum would total:
Assuming no sales tax is collected, a business credit card sale is recorded as a?
Debit to Accounts Receivable and a Credit to Sales.
Suppose the list price of goods is $1000 and the trade discount is 20%. What is the amount of the discount and what is the net price the wholesaler records as sales?
If an Invoice lists “2/10, n/30”, these numbers and letters are known as?
The credit terms.
Connor Company sells merchandise for $2000 on account to Market Industries on January 21, at 1/10, n/30, Invoice 190. Market returns $200 of merchandise on January 23, receiving credit memorandum 120 from Connor. What amount would Market pay if they submit payment on January 29?
Merchandise is sold on credit for $500 plus 6% sales tax. The entry in the journal will include a debit to Accounts Receivable for?
When a sales tax return is prepared, the amount of a firm’s taxable gross sales for the month are computed as?
Cash sales plus Credit sales less Sales Returns and Allowances.