Identify if the two statements are either true or false. 1. The bill of lading is a document prepared by the seller detailing the terms of delivery 2. The sales invoice is the evidence for credit sales and purchases.

Q: When the seller advances the transportation costs and the terms of sale are FOB shipping point, the…

A: FOB shipping point - Under FOB Shipping term of sale the purchaser have to bear the cost of…

Q: The realisation concept determines when goods sent on credit to customers are to be included in the…

A: Sales: It is an activity of selling goods and services in exchange for money.

Q: Which one of the following statements best describes the purpose of a goods despatched note? A It is…

A: The goods dispatch note is prepared by seller, so as to keep the record of goods being dispatched.

Q: Which of the following will be the Correct source document assuming that your business received…

A: The various documents are prepared to be provided to customer or received from supplier.

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: 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: -What is the journal entry for recording credit sales? a. Sales Dr. and Accounts Receivable Cr b.…

A: Journal entry is an important and attentive process of accounting cycle through the help of journal…

Q: .   c.   completeness of receivables.   d.  collectibility of the invoices.

A: The four qualities of a confirmation are as follows: Receipt. Responses can be written or spoken.…

Q: Which of the following statements is correct about credit period? A. If a customer purchases goods…

A: Credit sales means when goods of the business are sold on account to customers and customers has not…

Q: When goods are sold on credit the account of a customer is called : Select one: a. Purchases Return…

A: Lets start one by one to understand the all the terms, Purchase return:- It is a type of transaction…

Q: Demonstrate, using practical example how to prepare accounts from the Sales day book and Sales…

A: The sales day book is a manually-maintained ledger in which is recorded the key detailed information…

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: Which of the following is NOT a financial transaction? a. purchase of products b. cash receipts c.…

A:

Q: The functions of and documents generated by which of the below departments determine when a…

A: Lets understand the basics. In organization, there are various department which are inter connected…

Q: Which of the following transactions does the journal entry above belong to?      a) Purchase…

A: goods purchased are always debited. Liability account are always credited VAT to be deducted is to…

Q: What is another name for the bill that the seller sends to the buyer when the buyer purchases…

A: Solution: Purchase order is prepared and sent by buyer to seller while placing an order. Receiving…

Q: What is the normal balance of the following accounts: (a) Cost of Merchandise Sold, (b) Customer…

A:

Q: The arrangements between buyer and seller as to when payments for merchandise are to be made are…

A: Solution The arrangement between the buyer and the seller as to when payment for merchendise are to…

Q: The entry to record the return of merchandise from a customer would include a  debit to Sales…

A: Sale return means when goods sold to customer returned back because of any reson. When we sold goods…

Q: 6-Which of the following document will be raised by the supplier at the time of Merchandise sales…

A: Introduction: Credit sales: When goods sold on credit basis called as credit sales. The buyer…

Q: When purchases of merchandise are made on account and the perpetual method is used, the transaction…

A: If a business entity purchases the merchandise Inventory on account, hereunder double-entry system…

Q: Explain “Sales Returns and Allowances”. Why does this account have a normal debit balance?

A: Sales Returns and Allowances Sales Return and Allowances is actually a contra revenue account (i.e.…

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: Requirement a. What are the accounting requirements for a correct sales​ cutoff?     A. A shipment…

A: Revenue shall be recognition according to accounting standards. Following is the condition to…

Q: which two accounts are used to recognize shipping charges for a buyer assuming the buyer purchases…

A: Shipping cost depends upon the terms of the contract. Generally, there are two types of conditions.…

Q: Which account will be debited to record the purchase of merchandise on credit under periodic…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: when a buyer returns merchandise purchased for cash, the buyer will record the transaction as a…

A: The purchase return in the books of the buyer under the perpetual inventory is to debit the accounts…

Q: Please tell us about Sales Discounts.  Why are they necessary?  Does this account appear on the…

A: Discount is the amount of reduction in the value of sale or purchase. In other words, discount in…

Q: You are working for a company and process a credit memo. This indicates that: merchandise was…

A: A credit memo is issued by a seller to the buyer indicating that amount due from the buyer has been…

Q: A bill or a statement issued by the seller to the buyer giving details of goods sold. a. chart of…

A: The seller issues a bill containing all the details about the sales to the buyer.

Q: A credit memo states the amount of a sales allowance or return

A: Credit memo is a document issued by the seller of the goods to the buyer as a source document

Q: Statement 1: Under accrual basis, net sales is computed as the difference between sales returns and…

A: The two methods of recognizing revenues and expenses are accrual basis accounting and cash basis…

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: 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: When should revenue from the sale of merchandise normally be recognized? A)When the customer takes…

A: Revenue recognition concept says that when all the risk and reward has been passed on to the buyer…

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 transactions does this record belong to?    a) Record of purchase of…

A: Purchase are debted and debt securities are credited. Promissory note are debt securities

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: Required Given that prudence is the main consideration, discuss under what circumstances, if any,…

A: Accrual Basis of accounting refers to the accounting, where the transactions are recorded as and…

Q: Which of the following transactions does the above journal entry belong to?      a) Goods…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: . The bill of lading is a document prepared by the seller detailing the terms of delivery 2. the…

A: Answer: There are various types of documents that are prepared as the part of sales while shipping.

Q: True or False: The posting of purchase transactions to the general ledger is done in the same manner…

A: Purchase transactions are the transactions relating to the procurement of goods from the party…

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: Explain in detail different types of documentation that the business would expect to change hands in…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Which account will be debited to record the Sale of merchandise on credit under periodic inventory…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…