Accounting Chapter 10 Review

A tax on a sale of merchandise or services.

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

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

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

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

Most businesses receive cash for credit and debit card sales

The amount of cash received for a sale on account of $1,050 when the cash is received within the 2% discount period is

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

A terminal summary is also known as a Z tape.

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

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 A/R subsidiary ledger frequently to

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

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

For a sale on account of $2000 plus sales tax of $75, the amount recorded in the A/R amount column of a sales journal is

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

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

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

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

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

When money from credit & debit card sales transactions is received, the business gets to keep all of it.

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

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

A cash discount on sales taken by a customer.

A special journal used to record only cash receipt transactions.

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

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

ABC Co. records a $1000 sale on account on May 15. On June 1, the customer pays the account. The sale should be recorded

Sales Tax Payable has a normal credit balance.

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