Sue's Jewelry sold 30 necklaces for $25 each to a credit customer. The invoice included a 6% sales tax and payment terms of 2/10, n/30. In addition,...

Sue's Jewelry sold 30 necklaces for $25 each to a credit customer. The invoice included a 6% sales tax and payment terms of 2/10, n/30. In addition, 5 necklaces were returned prior to payment. The entry to record the return would include:

a credit to Sales Tax Payable for $7.50.

a debit to Sales Returns and Allowances for $125.00.

a debit to Accounts Receivable for $132.50.

a debit to Sales Returns and Allowances for $132.50.

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Question 5 2.5 pts

When completing a worksheet:

the ending inventory amount appears in the income statement debit column.

the beginning inventory amount appears in the balance sheet debit column of the worksheet.

the ending inventory amount appears in the unadjusted trial balance debit column of the worksheet.

the beginning inventory amount appears in the adjustment credit column.

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Question 6 2.5 pts

Sales Returns and Allowances is a contra-revenue account with a normal debit balance.

True

False

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Question 7 2.5 pts

An example of a subsidiary ledger is the revenue ledger.

True

False

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Question 8 2.5 pts

Accounts in the accounts receivable subsidiary ledger are listed alphabetically.

True

False

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Question 9 2.5 pts

The balance in the Accounts Receivable account is $2,200 debit. Therefore, the balances in the subsidiary ledger should be $2,000.

True

False

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Question 10 2.5 pts

The controlling account is found in the subsidiary ledger and it summarizes or controls the general ledger account.

True

False

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Question 11 2.5 pts

The accounts receivable subsidiary ledger shows the amount collected from each customer.

True

False

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Question 12 2.5 pts

When you record the entry to the subsidiary ledger and place the checkmark in the PR column, it is necessary to post to the Accounts Receivable controlling account.

True

False

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Question 13 2.5 pts

The general ledger and the accounts receivable subsidiary ledger are the same book.

True

False

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Question 14 2.5 pts

Using the perpetual inventory system, the purchase of merchandise on account would include a:

debit to Merchandise Inventory and a credit to Accounts Payable.

debit to Sales and a credit to Accounts Receivable.

debit to Accounts Payable and a credit to Merchandise Inventory.

debit to Merchandise Inventory and a credit to Sales.

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Question 15 2.5 pts

The return of merchandise to the supplier for credit using the perpetual inventory system would include a:

debit to Accounts Payable and a credit to Merchandise Inventory.

debit to Accounts Receivable and a credit to Accounts Payable.

debit to Accounts Payable and a credit to Purchases Returns and Allowances.

debit to Sales Returns and Allowances and a credit to Merchandise Inventory.

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Question 16 2.5 pts

The recording of the cost of freight-in under the perpetual inventory system would include a:

credit to Freight-In.

credit to Merchandise Inventory.

debit to Freight-In.

debit to Merchandise Inventory.

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Question 17 2.5 pts

The account used in perpetual inventory to record the cost of inventory used to make the sale is:

Purchases Returns and Allowances.

Purchases Discounts.

Purchases.

Cost of Goods Sold.

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Question 18 2.5 pts

Returned merchandise for credit under the perpetual inventory method. This will be recorded with:

a debit to Accounts Payable and a credit to Merchandise Inventory.

a debit to Accounts Payable and a credit to Purchases Returns and Allowances.

a debit to Purchase Returns and Allowances and a credit to Merchandise Inventory.

a credit to Accounts Payable and a debit to Merchandise Inventory.

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Question 19 2.5 pts

When using a perpetual inventory method, what account(s) must be updated when a sale is recognized?

Supplies

Cost of Goods Sold

Both A and C are correct.

Merchandise Inventory

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Question 20 2.5 pts

Merchandise Inventory is what type of account?

Contra-Asset

Expense

Asset

Liability

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Question 21 2.5 pts

Returned merchandise for credit on account. The perpetual inventory system is in use. This will be recorded with:

a debit to an asset and a credit to a liability.

a debit to a liability and a credit to an asset.

a debit to a liability and a credit to an expense.

a debit to an asset and a credit to an expense.

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Question 22 2.5 pts