Question
1.Sales to customers who use bank credit cards, such as
MasterCard and VISA, are generally treated as credit sales.
True False
2.Merchandise is sold for cash. The selling price of the
merchandise is $6,000 and the sale is subject to a 7% state sales
tax. The journal entry to record the sale would include a credit to
sales tax payable for $420
sales for $6,240
cash for $6,000
sales for $5,580
3.Merchandise subject to terms 2/10, n/30, FOB shipping
point, is sold on account to a customer for $25,000. What is the
amount of the sales discount allowable?
$260 $150 $500
$460
4.Sales to customers who use bank credit cards such as
MasterCard and Visa are usually recorded by a
debit to Cash and a credit to Sales
debit to Cash, credit to Credit Card Expense, and a credit to
Sales
debit to Bank Credit Card Sales, debit to Credit Card
Expense, and a credit to Sales
debit to Sales, debit to Credit Card Expense, and a credit to
Cash
5.Gross profit is equal to
sales less selling expenses
sales less cost of merchandise sold
sales plus cost of merchandise sold
sales plus selling expenses
6.If payment is due by the end of the month in which the sale
is made, the invoice terms are expressed as n/30.
True False
7.When purchases of merchandise are made on account with a
perpetual inventory system, the transaction is recorded with which
entry?
8.A retailer purchases merchandise with a catalog list price
of $30,000. The retailer receives a 15% trade discount and credit
terms of 2/10, n/30. How much cash will be needed to pay this
invoice
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