Read each statement carefully. If the statement is true, circle A, if the statement is false, Circle B 1. Cash in the chart of accounts is an example of a control account. A) True B) False 2. The seller would record the return of merchandise sold on account in the sales journ A) True B) False 3. Credit postings to the accounts receivable general ledger account come from the cas receipts journal and the general journal. A) True B) False 4. A deposit in transit has been recorded by the bank but not the company A) True B) False 5. The Cash Short and Over account is debited when sales revenue exceeds cash recei A) True B) False 6. When using the allowance method, the entry to write off an accounts receivable has effect on income A) True B) False 7. It is normal to have a debit balance in the allowance for doubtful accounts account adjusting journal entries at the end of the year. A) True B) False