How are the total values received or to be received in return for goods and services sold abroad, to which account? A) Other Discounts Account / Debt B) Foreign Sales Account / Receivable C) To / Credit to Gross Sales Account D) Other Sales To Be Accounted E) Domestic Sales Account / Receivable

How are the total values received or to be received in return for goods and services sold abroad, to which account? A) Other Discounts Account / Debt B) Foreign Sales Account / Receivable C) To / Credit to Gross Sales Account D) Other Sales To Be Accounted E) Domestic Sales Account / Receivable

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter24: Recording International And Internet Sales

Section: Chapter Questions

Problem 1CP

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Concept explainers

Balance of Payments

BOP is categorized into the following three components:

Question

24 - How are the total values received or to be received in return for goods and services sold abroad, to which account?
A) Other Discounts Account / Debt

B) Foreign Sales Account / Receivable

C) To / Credit to Gross Sales Account

D) Other Sales To Be Accounted

E) Domestic Sales Account / Receivable

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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24 - How are the total values received or to be received in return for goods and services sold abroad into which account?A) Other Discounts Account / DebtB) Foreign Sales Account / ReceivableC) To / Credit to Gross Sales AccountD) Other Sales will be credited to your accountE) Domestic Sales Account / Receivable
11 - In export transactions, the export price collected in advance from foreign buyers is recorded into which account (in foreign currency)?A) Receivable / To Account Advances GivenB) Bank Account / ReceivableC) Advances Received Account / ReceivableD) Advances Given Account / DebtE) Other Advances Received Account / Debt
18 - In the form of payment with acceptance credit, which is the journal entry to be made if the policies sent by the exporter are accepted by the importer?A) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 121 02 RECEIVABLES-FC XX 601 01 FOREIGN GOODS SALES XX B) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 120 02 FOREIGN BUYER XX 601 01 FOREIGN GOODS SALES XX C) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 120 02 FOREIGN BUYER XX 121 02 RECEIVABLES-FC XX D) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 121 02 RECEIVABLES-FC XX 120 02 FOREIGN BUYER XXE) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 102 02 BANK X DTH XX 121 02 RECEIVABLES-FC XX
29 - How are purchase refunds recorded to which account?A) From the purchase to the debt of the returns accountB) To the credit of the commercial goods accountC) To the debt of domestic sales accountD) To trade goods account debtE) Cost of commercial goods sold is credited to the account
18 - What is the journal entry to be made if the policies sent by the exporter are accepted by the importer in the form of payment with acceptance credit?A) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 121 02 RECEIVABLES-FC XX 601 01 FOREIGN GOODS SALES XX B) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 120 02 FOREIGN BUYER XX 601 01 FOREIGN GOODS SALES XX C) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 120 02 FOREIGN BUYER XX 121 02 RECEIVABLES-FC XX D) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 121 02 RECEIVABLES-FC XX 120 02 FOREIGN BUYER XXE) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 102 02 BANK X DTH XX 121 02 RECEIVABLES-FC XX
18 - The entity made a discount due to the premature payment of the receivable arising from the sale it made on credit. In which account and how should this transaction be recorded? A) Domestic Sales account receivable B) Sales Discounts account receivable C) To the debt of the Domestic Sales accountD) To the debt of General Administrative Expenses accountE) To the debt of Sales Discounts account
19 - What is the payment method in which the goods are sent to the buyer without payment by the exporter company and the cost of the goods is paid within the predetermined term?A) Payment with Acceptance CreditB) Payment Against GoodsC) Pre-financing PaymentD) Policy PaymentE) Cash Against Documents
8 - What is the most risky payment method for the exporter company?A) Payment with acceptance creditB) Payment by letter of credit C) Pre-financingD) Cash against goods E) Advance payment
12 - CODE AND NAME OF THE ACCOUNT WILL BE DEBT 102 02 X BANK DTH DOLAR XXX120 02 INTERNATIONAL BUYER XXX646 02 IR. CHANGE DIFFERENCE XXXWhich transaction does the journal entry belong to? A) Collection record of the export in the current periodB) Import fee transfer recordC) Foreign income registrationD) Recording of the return of the export priceE) Registration of collection in the next period of the export
23-It is used to who is responsible for paying shipping and when the title of the goods passes from seller to buyer: This term will be applicable to a. Credit terms b. Shipping terms c. Discount term d. Cash term
4 - At what rate is the valuation of demand deposit accounts in foreign currency in the bank account?A) Nominal valueB) Foreign exchange selling rateC) Exchange rateD) With effective purchase rateE) With comparable value
31 - _____________________ / _____________________153 COMMERCIAL GOODS XX191 DEDUCTIBLE VAT XX320 SELLERS XX_____________________ / _____________________Which of the following belongs to the above journal entry?A) Returns B) Buy Discounts C) Purchase of Goods on Credit D) Sales Returns E) Sales of Goods on Credit