A company sells merchandise for cash. This transaction is recorded as: Group of answer choices A debit to cash and a credit to sales A debit to sales and a credit to cash
Q: he type of transaction that would appear in the sales journal would be a sale of equipment for cash…
A: Solution: The sales journal is an accounting journal which keeps records of all of the credit sales…
Q: Which of the following accounts will be used in equation, if the goods are sold on credit to Mr.…
A: The basic accounting equation is Assets = liabilities + equity If an asset is account is…
Q: Which of the following will be called as an expense of a Merchandise business? a. Sale of…
A: a.) Sale of merchandise inventory means sales of goods so it is and income. b.) Trade discount is…
Q: If a customer pays with a credit card and the service has been provided, which of the following…
A: When a customer pays at a shop by Credit card, there incur Credit Card Expenses. The company of the…
Q: When a product is sold on credit, which account should be debited for the seller? A.cash…
A: Sale of a product means to sell the goods in stock to the customer. It can be sold either on cash or…
Q: For each of the following statements, fill in the blanks with the correct account names. A retailer…
A: Retailer is the person who deals in purchase and sale of merchandise. At the time of credit…
Q: Which of the following is an example of Expense of a Merchandise Business? a. Salary and Wages paid…
A: Introduction: Expense: Amount spent on for running the day to day activities of the business called…
Q: 1. Which of the following is not a difference between a retail business and a service business?…
A: Accounting Equation: Assets = Liabilities This equation is same for every business. it does not…
Q: A Merchandise business uses Multi Step income statement. The business receives OMR 8,200 interest…
A:
Q: The revenue recognition principle requires retailers to recognise sales revenue when it is earned…
A: The accrual basis accounting system is considered a feature of the accrual base accounting system…
Q: Use the following abbreviations to indicate the journal in which you would record transactions a…
A: The general journal is maintained for recording the transactions which do not fall under sales,…
Q: Which of the following activities is not a component of the operating cycle? a.
A: operating cycle refers to the time the entity takes to buy the goods, process and sell those goods…
Q: What is the nature of (a) a credit memo issued by the seller of merchandise, (b) a debit memo issued…
A: (a) A credit memo issued by the seller of merchandise.A credit memo is a commercial document that is…
Q: When should revenue from the sale of merchandise normally be recognized? (Assume the company reports…
A: The revenue should be recognized in the following conditions. 1.When the amount realized or received…
Q: It is used to show who is responsible for paying for shipping and when the title of the goods passes…
A: Payment term used to show who is responsible for paying for shipping and when the title of the goods…
Q: When does the cost of inventory become an expense?a. When cash is collected from the customerb. When…
A: Answer: b. When inventory is delivered to a customer
Q: Consignments refer to that specialized marketing method whereby the Consignee a. holds title to the…
A: Solution: In the consignments model, consignor will remain owner of goods and consignee takes…
Q: Which of the following will be called as a Merchandising Business? a. Receives a loan from bank b.…
A: Merchandising business: A merchandising business is the most common type of business is undertaken…
Q: One-column sales journal may be used to record collection on account sales of goods for cash sales…
A: Sales Journal records all the entries related to the sales made to customers both for cash and on…
Q: Business documents used to keep track of sales and purchases are called _____. F.O.B. shipping…
A: The invoice is prepared by seller and buyer at the time of sale and purchase.
Q: On a journal entry with a debit to Cost of Goods Sold you would expect a credit to…
A: option (d)Merchandise Inventory
Q: Which two accounts are used to recognize shipping charges for a buyer, assuming the buyerpurchases…
A: The term "free on board" (FOB) relates to whether the vendor or customer is liable for damaged or…
Q: b. Debits: Accounts Receivable, Cost of Goods Sold; credits: Sales options correctly expresses the…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: elow are some typical transactions incurred by Ricketts Company. or each transaction, indicate…
A: There are 5types of journals where we record all the transactions- Cash receipts journal Cash…
Q: 1. Which of the following accounts are used when recording the sales entry of a sale on credit?e A.…
A: Sales is a revenue account and all revenues increase when credited. Accounts receivable is an Asset…
Q: Presented below is information related to Lathorp Corp., which sells merchandise with terms 2/10,…
A: Credit Term-:Credit Terms are the payment terms illustrated on the invoice at the moment of buying…
Q: Which of the following entries for goods sold by cash is correct? a) Cash Dr, AR Cr b) AR Dr,…
A: Goods or services provided by the business can be sold for cash or on account. Cash sales are sales…
Q: Which of the following accounts is used in merchandising but not in service type of business?…
A: Service company deals with the intangible product whereas merchandise company buys tangible product…
Q: If a customer purchases merchandise on credit and return the defective merchandise before payment,…
A: Perpetual inventory system: The perpetual inventory system records and updates the inventory after…
Q: When a customer returns merchandise previously purchased on credit, the entry for the seller to…
A: Journal entry:- Customer Ac Dr to Sales A/C
Q: Infrequent sales returns would be recorded in which journal?
A: Sales returns refer to goods returned by the customers and journal is the first book of entry to…
Q: inventory that it previously purchased. The entry to record that transaction should be: Group of…
A: The journal entries are prepared to record daily transactions of the business.
Q: credit terms are terms for a. when the payments for merchandise are to be made b. when inventory is…
A: Credit terms refers to the agreement made between the seller and the buyer which defines the timing…
Q: Which of the following accounts has a normal debit balance. (Choose all that apply)
A: Assets, expenses, losses, and the owner's drawing account will normally have debit balances. Their…
Q: From page 4-3 of the VLN, which statement is true regarding cash sales? O We always recognize the…
A: Cash refers to the monetary value and resource that is important for the company to operate. It is…
Q: Identify whether each of the following transactions, which are related to revenue recognition, are…
A: Revenue recognition principle says that revenue should be recognised in business when it is earned.…
Q: Which of the following situations has to .5 ? do with account payable )2 نقطة( Sales on credit…
A: Note: Since you have posted multiple questions, we will solve the first question. Please submit a…
Q: What accounts are used to recognize a retailer’s purchase from a manufacturer on credit?A. accounts…
A: Purchase of goods on credit means inventory has been purchased but payment has not been made yet.…
Q: It is used to who is responsible for paying shipping and when the title of the goods passes from…
A: The goods and services are usually exchanged between two parties. One is seller and the other is…
Q: Which of the following journal entry is correct for the transactions of goods returned by a…
A: When we make a sales to customer, we pass the following entry:- Trade receivables Dr To…
Q: If a customer purchases merchandise on credit and returns the defective merchandise beforepayment,…
A: When customer made purchases on credit from the business, then one side it will generate accounts…
Q: Give an example for the transactions took place in a Zafar Textile Industry. Record the relevant…
A: For recording the transactions journal entries are passed primarily to record them in the…
Q: Which of the following needs an adjustment to the accounts receivable account of AB Company? a. a…
A: The freight cost is paid by the seller till the goods have reached their destination and then the…
Q: Match each phrase with its definition. 1. Seller's description of a cash discount granted to buyers…
A:
Q: Wilcox Electronics uses a sales journal, a purchases journal, a cash receipts journal, a cash…
A: Sales journal records sales on credit. Cash receipt journal records all cash receipt transactions.…
Q: The "dual nature of merchandise transactions" as described in this chapter means every business…
A: Solution Merchandising company means the company which is not engage in production and are rather…
Q: The journal entry to record a credit sale ignoring cost of goods sold is ANSWER: Accounts…
A: Journal Entry for Credit sale : Account Name Debit Credit Accounts…
Q: What is the totals credits and total debits? Also answer the following questions: Answer the…
A: Total credits= sales credit+ sales tax payable credit =6398.82+311.18 =6710 Total debit=Account…
Q: 3. A one-column sales journal may be used to record a. sales of supplies on account. b. sales of…
A: solution one column sales journal One column sales journal is a journal which is used to record the…
Q: If a customer pays with a credit card and the service has been provided, which of the following…
A: Credit card is like a physical card which are used as a postpaid, in which customer or card holder…
A company sells merchandise for cash. This transaction is recorded as:
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- Identify whether each of the following transactions, which are related to revenue recognition, are accrual, deferral, or neither. A. sold goods to customers on credit B. collected cash from customer accounts C. sold goods to customers for cash D. collected cash in advance for goods to be delivered laterFor each of the following accounts, identify whether the normal balance is a debit or a credit. Also specify whether the account is a contra account. a. Sales Returns and Allowances b. Merchandise Inventory c. Sales d. d Freight In e. Purchases Returns and Allowances f. Sales Tax Payable g. PurchasesWhich two accounts are used to recognize shipping charges for a buyer, assuming the buyer purchases with cash and the terms are FOB Shipping Point? A. delivery expense, cash B. merchandise inventory, cash C. merchandise inventory, accounts payable D. The buyer does not record anything for shipping since it is FOB Shipping Point.
- Which of the following accounts are used when recording a purchase? A. cash, merchandise inventory B. accounts payable, merchandise inventory C. A or B D. cash, accounts payableWhich of the following accounts are used when recording the sales entry of a sale on credit? A. merchandise inventory, cash B. accounts receivable, merchandise inventory C. accounts receivable, sales D. sales, cost of goods soldSold goods for $650 cash. Which journal would the company use to record this transaction? A. sales journal B. purchases journal C. cash receipts journal D. cash disbursements journal E. general journal
- Name two situations where cash would be remitted to a customer from a retailer after purchase.Can a sales journal be used to record sales on account and a cash sale? Why or why not?If a customer pays with a credit card and the service has been provided, which of the following accounts will be used to record the sales entry for this transaction? A. Cost of Goods Sold, Merchandise Inventory, Sales Revenue B. Sales Revenue, Credit Card Expense, Accounts Receivable C. Accounts Receivable, Merchandise Inventory, Credit Card Expense D. Cost of Goods Sold, Credit Card Expense, Sales Revenue
- From the following list, identify which items are considered original sources: A. accounts receivable B. receipt from post office for post office box C. purchase order D. general ledger E. adjusted trial balance F. statement of retained earnings G. electric bill H. packing slip I. company expense account J. statement of cash flowsWhat accounts are used to recognize a retailers purchase from a manufacturer on credit? A. accounts receivable, merchandise inventory B. accounts payable, merchandise inventory C. accounts payable, cash D. sales, accounts receivableFor each of the following transactions, state which special journal (Sales Journal, Cash Receipts Journal, Cash Disbursements Journal, Purchases Journal, or General Journal) and which subsidiary ledger (Accounts Receivable, Accounts Payable, neither) would be used in recording the transaction. A. Sold inventory for cash B. Issued common stock for cash C. Received and paid utility bill D. Bought office equipment on account E. Accrued interest on a loan at the end of the accounting period F. Paid a loan payment G. Bought inventory on account H. Paid employees I. Sold inventory on account J. Paid monthly insurance bill
