1) Which of the following describes the Sales Returns and Allowances account? Multiple Choice A revenue account...
Question:
1) Which of the following describes the Sales Returns and Allowances account?
Multiple Choice
A revenue account with a normal credit balance.
An expense account with a normal debit balance.
A contra expense account with a normal debit balance.
A contra revenue account with a normal debit balance
The amount of the trade discount taken by the customer is:
Multiple Choice
recorded as an expense.
recorded as a revenue.
recorded as a liability.
not recorded directly as sales are recorded net of trade discounts.
Kay Sadia sold merchandise for $7,200 subject to an 8% sales tax. The entry in the general journal will include a debit to Accounts Receivable for:
Multiple Choice
$6,624.00.
$7,200.00.
$7,776.00.
$12,960.00.
Modern Candy, a wholesaler, sold a crate of candy for $360.00 on account to a customer with credit terms of 1/10, n/30. If the customer pays within the discount period, what would be the total amount credited to the sales account?
Multiple Choice
$360.00
$356.40
$363.60
$324.00
Kay Sadia sold merchandise for $7,200 subject to 8% sales tax. The entry in the general journal to record the sale will include:
Multiple Choice
a debit to Sales Tax Payable for $576.00.
credit to Sales for $7,200.00.
a credit to Sales for $7,776.00.
a debit to Accounts Receivable for $7,200.00.
Expert Answer:
