Accounting 1 -- Chapter 10

The amount of sales tax collected is an asset of the business until paid to the state.

Regardless of when merchandise is sold, revenue should be recorded when cash is received.

Sales for cash and credit cards are recorded as a single cash sales transaction.

Realization of Revenue means recording a sale when merchandise is sold -- not when paid.

When cash is proved, it must always equal the amount on the next unused check stub.

The process of preparing a batch report of credit card sales from a POS terminal.

When a journal is proved, the debits must equal the credits.

This is a cash discount on sales taken by a customer

Credit allowed for damaged merchandise, resulting in a decrease in the customer's balance.

A computer used to collect, store, and report everything for a sales transaction.

Sales Returns & Allowances is

All sales of merchandise are recorded in a sales journal.

The terms 2/10, n 30 mean that a 2% discount may be taken if paid in 30 days.

A special journal used to record only cash receipt transactions.

The report that summarizes the cash and credit card sales of a point-of-sale terminal.

A special journal used to record only sales of merchandise on account.

A report of credit card sales produced by a point-of-sale terminal.

A form prepared by the vendor showing the amount deducted for returns & allowances.

Using a terminal summary for cash and credit card sales is an application of which concept?

The Sales Discount account has a normal credit balance because it is contra to Sales.

For a sale on account of $1,000 plus $80 sales tax, what amount is recorded as the AR debit?

A sale in which a credit card is used for the total amount of the sale.

When cash is received within a customer's discount period, the AR is the discounted amount