True/False
Indicate whether the statement is true or
false.
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1.
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Sales tax payable is a liability account with a normal debit balance.
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2.
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Regardless of when payment is made, the revenue should be recorded at the time
of a sale, not on the date cash is received.
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3.
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The accounts receivable account is increased by a credit and decreased by a
debit.
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4.
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A special journal used to record only sales of merchandise on account is called
a sales journal.
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5.
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The process of preparing a batch report of credit card sales from a
point-of-sale terminal is called batching out.
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6.
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When a sales discount is taken, the customer pays less than the invoice amount
previously recorded in the sales account.
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7.
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All businesses batch out weekly as required by their banks.
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8.
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It is better for a business to debit the account Sales Discount for the amount
of the sales discount versus debiting sales.
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9.
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Credit is only granted to a customer for the return of merchandise.
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10.
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After the cash receipts journal is proved at the end of each month, cash is
proved.
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Matching
Use the word list provided
below. Not all words will be used; some may be used multiple times. Copy and paste from the list.
Misspellings will be counted as incorrect.
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A. | credit memorandum | G. | sale on account | B. | customer | H. | sales allowance | C. | cash
sale | I. | work
sheets | D. | accounts receivable | J. | terminal summary | E. | sales return | K. | sales tax | F. | purchase
invoice | L. | batch
report |
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1.
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A sale in which cash is received for the total amount of the sale at the time
of the transaction is called a(n) ____.
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2.
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Credit allowed a customer for part of the sales price of merchandise that is
not returned, resulting in a decrease in the vendor's accounts receivable, is called a(n)
____.
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3.
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sale for which cash will be received at a later date is known as a(n)
____.
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4.
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The report that summarizes the cash and credit card sales of a point-of-sale
terminal is called a(n) ____.
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5.
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A ____ is a tax on a sale of merchandise or services.
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6.
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Credit allowed a customer for the sales price of returned merchandise resulting
in a decrease in the vendor's accounts receivable is called a(n) ____.
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7.
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A sales invoice for the seller is a(n) ____ to the customer.
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8.
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A person or business to whom merchandise or services are sold is called a(n)
____.
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9.
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A form prepared by the vendor showing the amount deducted for returns and
allowances is called a(n) ____.
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10.
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A report of credit card sales produced by a point-of-sale terminal is called
a(n) ____.
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