Accounting Ch 10 Review

Most states do not require a business to collect sales tax from customers.

A subsidiary ledger containing all accounts for charge customers.

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

When a sales discount is taken, a customer pays less cash than invoice amt previously recorded

An invoice describes the goods or services sold, the quantity and price, and terms of the sale.

The amount of sales tax collected is an expense of operating a business.

Sold merchandise on acct $800 + sales tax of $48, the amt recorded in AR amt column of sales journal is $_________.

Some businesses call the schedule of accts receivable the accounts receivable trial balance

Most businesses receive cash for credit and debit card sales

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

Recorded cash and credit card sales, plus sales tax. What is debited?

A specialized computer used to collect, store & report all information about sales transaction

A business should post sales on acct to the AR subsidiary ledger frequently to

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

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

Separate transactions are recorded for cash, credit card & debit card totals listed on term sum

Sales Tax Payable has a normal debit balance.

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

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

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

Sales tax rates are usually stated as a percentage of sales.

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

Inv used as a source doc for recording sale on account is a sales inv, sales tckt or sales slip

If a business sold merchandise on account to Doris Edwards, plus sales tax, what is credited?

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

A terminal summary is also known as a T tape.

A special journal used to record only cash receipt transactions.

A cash discount on a sale taken by the customer.

A tax on a sale of merchandise or services.

Revenue should be recorded when a sales is made, not on the date cash is received.

Amt of cash received for a sale on acct of $1000 when cash is received w/i 2% discount period

Olson Co records a $1500 sale on acct on 8/23. On 9/8, the customer pays the acct. The sale is recorded in _________.

Only the fed govt can exempt from sales taxes some types of merch or sales to certain customers

Credit card & dc sales are treated as cash sales because business rec its cash in a short time

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

A schedule of ar contains a complete listing of each sales invoice owed by customers.

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

The total of each gen amt column of a cr journal is posted to the corresponding gen ledger acct