LO. 2 1. Revenues are most often recognized when a. A sale takes place or a service is performed b. Cash is collected c. Inventory is purchased for resale d. Inventory is manufactured for resale 2. On June 30, Parrott Company sold goods for $800 on account. The journal entry to record the recognition of revenue would include a. A debit to cash of $800. b. A debit to sales revenue of $800. c. A credit to sales revenue of $800. d. A credit to accounts receivable of $800. 3. Which of the following accounts would normally be found on the statement of comprehensive income? a. Unearned Service Revenues b. Accounts Receivable c. Taxes Payable d. Sales Discounts 4. The difference between gross sales and net sales is a. Cost of goods sold b. Selling and administrative expenses c. Sales discounts and sales returns and allowances d. Gross margin 5. Charles Company sells foods wholesale. On May 15, Charles sold 400 cases of beans to Robin Company for $8 per case with terms of 2/10, n/30. On May 25, Swoops Company paid Edwards the full amount due. Given these data, the entry to record the collection of cash on May 25 would include a a. Credit to Sales Discounts of $64 b. Debit to Cash of $3,200 c. Credit to Accounts Receivable of $3,200 d. Credit to Cash of $3,1361 6. Amy Company sold $8,000 of merchandise to Tory Turnbull with terms 2/10, n/30. If Tory paid for all of the merchandise within the discount period, the journal entry that Amy will make to record the collection of cash would include a a. Debit to Sales Discounts of $160 b. Credit to Sales Discounts of $160 c. Credit to Cash of $7,840 d. Debit to Cash of $8,000 7. Raven Company had the following account balances Sales Revenue, $100,000; Sales Returns and Allowances, $2,400; Sales Discounts, 2,400; and Bad Debts, $400. Given these balances, the amount of net sales is a. $100,000