Accounting Ch. 10 Review

Sales Tax Payable has a normal credit balance.

The amount a business adds to the cost of merchandise to establish the selling price.

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

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

The total of each general amount column of a cash receipts journal is posted to the corresponding general ledger account

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

A listing of customer accounts, account balances, and total amount due from all customers.

A tax on a sale of merchandise or services.

A cash discount on a sale taken by the customer.

A special journal used to record only cash receipt transactions.

Total credit card and debit card sales are recorded as a Dr. to cash, since cash will be received for the entire amount.

A batch report is a detailed report of cash sales during a specific period of time.

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

A business should post sales on account transactions to the accounts receivable subsidiary ledger frequently to

Separate transactions are recorded for cash, credit card, and debit card totals listed on a termal summary.

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

The amount a business receives from the sale of an item of merchandise.

Jones Co. records a $1,000 sale on account on 9/13. On 10/1, Jones pays the account. The sale should be recorded in the

A sale in which the customer pays for the total amount of the sale at the time of the transaction.

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

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

The balance of Accounts Receivable should equal the total of the schedule of accounts receivable.

The amount of cash received for a sale on account of $1,080 when the cash is received within the 2% discount period is

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

Most businesses receive cash for credit and debit card sales

Revenue should be recorded when a sale is made, not when the cash is received.

A subsidiary ledger containing all accounts for charge customers.

A terminal summary is also known as a Z tape.

For a sale on account of $1,000 plus sales tax of $80, the amount recorded in the Accts. Rec. amount column is

Only the federal government can exempt from sales taxes some types of merchandise or sales to certain types of customers

The amount of sales tax collected is a liability of a business until paid to the government.