Accounting: Chapter 10 Review

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

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

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

Purchases and sales of merchandise are the 2 major activities of a merchandising business.

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

When merchandise is sold on account & sales tax is also collected,

A cash discount on sales taken by a customer.

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

A special journal used to record only cash receipt transactions.

The amount of sales tax collected is a liability of the business until paid to the state gov't

The amount of sales tax on a sale is calculated as the price of goods

The process of preparing a batch report of credit card sales from a point-of-sale terminal.

Sale in which a credit card is used for the total amount of the sale at the time of transaction.

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

Because Sales Discount is a contra account to Sales, it has a normal debit balance.

All sales of merchandise are recorded in a sales journal.

A computer used to collect, store, and report all the information of a sales transaction.

Credit terms of 2/10, n/30 mean that if the account is paid in