Accounting Chapter 10 Review Journalizing Sales and Cash Receipts Using Special Journals

A special journal used to record only sales of merchandise on account Sales Journal

A cash discount on sales taken by a customer. Sales Discount

The report that summarizes the cash and credit card sales of a point-of-sale terminal Terminal Summary

A sale in which a credit card is used for the total amount of the sale at the time of the transaction Credit Card Sale

A special journal used to record only cash receipt transactions Cash receipts journal

A form prepared by the vendor showing the amount deducted for returns and allowances Credit Memorandum

Point-of-sale Terminal A computer used to collect, store, and report all the information of a sales transaction Point-of-sale Terminal

The process of preparing a batch report of credit card sales from a point-of-sale terminal Batching Out

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. Sales Allowance

A report of credit card sales produced by a point-of-sale terminal Batch Report

When cash is received for a sale on account within the discount period, the amount credited to Accounts Receivable is reduced by the amount of the discount.

Regardless of when merchandise is sold, revenue should be recorded when cash is received.

Point-of-sale terminals use UPC symbols to obtain the description and price of merchandise sold.

Because Sales Discount is a contra account to Sales, it has a normal credit balance.

Purchases and sales of merchandise are the two major activities of a merchandising business.

Cash is proved when the total of the Cash Debit column of a cash receipts journal equals the next unused check stub.

A terminal summary reports total cash and credit card sales of a point-of-sale terminal.

When a customer is granted credit for merchandise returned, Accounts Receivable is debited.

The amount of sales tax collected is an asset of the business until paid to the state government.

Using a terminal summary as a source document for weekly cash and credit card sales is an application of the accounting concept. Matching Expenses with Revenue Realization of Revenue Objective Evidence Business Entity

The amount of cash received for a sale on account of $1,000 The amount of cash received for a sale on account of $1,000.00 plus sales tax of $80 when the cash is received within the 2 percent discount period is. 1058.40 1080.00 1053.60 1062.00

Sales Returns and Allowances is: A contra expense account A revenue account An expense account A contra Revenue Account

Sales invoices should be Prepared in triplicate Numbered in sequence Used as source documents for sales on account All of the above

The amount of sales tax on a sale is calculated as the price of goods Plus the sales tax rate Minus the sales tax rate Times the sales tax rate Divided by the sales tax rate

For a sale on account of $1,000. 00 plus sales tax of $80 For a sale on account of $1,000.00 plus sales tax of $80.00, the amount recorded in the Accounts Receivable Debit column of a sales journal is $1,080.00 $80.00 $920.00 $1,000.00

When merchandise is sold on account and sales tax is also collected, Sales is debited for the price of the goods. Accounts Receivable is credited for the total sale and sales tax The accounts receivable account balance is increased. The sales tax is not reported

Sales discounts are recorded in Cash Receipts Journal Sales Journal General Journal Batch Report