ACC291T Week 1 Apply Exercise

Question 1

The following transactions took place at Five Flags Amusement Park during May. Five Flags Amusement Park must charge 8 percent sales tax on all sales:

 

DATE		TRANSACTIONS
2019
May	1	Sold merchandise on account to Bill Gomez; issued Sales Slip 1015 for $1,200 plus 8 percent sales tax, terms n/30.
	15	Recorded cash sales, $3,200 plus 8 percent sales tax.
	31	Received payment on account due from Bill Gomez for the sale on May 1.

• Sold merchandise on account to Bill Gomez; issued Sales Slip 1015 for $1,200 plus 8 percent sales tax, terms n/30.

• Recorded cash sales, $3,200 plus 8 percent sales tax.

• Received payment on account due from Bill Gomez for the sale on May 1.

 

Question 2

A wholesale business sells goods with a list price of $980 and a trade discount of 25 percent. The net sales price is

Multiple Choice

    $245.00.

    $735.00.

    $980.00.

    $1,005.00.

 

Question 3

Hour Place Clock Shop sold a grandfather clock for $2,450 subject to a 7% sales tax. The entry in the general journal will include a credit to Sales for

Multiple Choice

    $2,450.00.

    $2,229.50.

    $2,670.50.

    $2,441.00.

 

Question 4

If Lacy's Department Store charges 8 percent sales tax, the amount of sales tax collected on a $275 sale would be

Multiple Choice

    $22.00.

    $220.00.

    $34.38.

    $3.44.

 

Question 5

Vicente Company made sales using the following list prices and trade discounts. What amount should be recorded for each sale?
 

1. List price of $620 and trade discount of 40 percent.
2. List price of $720 and trade discount of 30 percent.
3. List price of $300 and trade discount of 20 percent.

 

Question 6

Record the following transactions of Lisa's Fashion Boutique in a general journal. Lisa's Fashion Boutique operates in a state with 8% sales tax. (Round your intermediate calculations and final answers to 2 decimal places):
 

DATE		TRANSACTIONS
2019
Feb.	2	Sold merchandise for cash totaling $3,400 to customers using bank credit cards. Record the 21 percent discount on credit card sales at time of sale.
	15	Sold merchandise totaling $2,900 to customers using American Express.
	20	Received amount due from American Express, less their 22 percent discount, for sales made by customers using American Express on February 15.

 

• Sold merchandise for cash totaling $3,400 to customers using bank credit cards. Record the 21 percent discount on credit card sales at time of sale.

• Sold merchandise totaling $2,900 to customers using American Express.

 

• Received amount due from American Express, less their 22 percent discount, for sales made by customers using American Express on February 15.

 

Question 7

If a firm had sales of $44,000 during a period and sales returns and allowances of $3,400, its net sales were

Multiple Choice

    $47,400.

    $44,000.

    $40,600.

    $3,400.

 

Question 8

Post the entries in the general journal below to the Accounts Receivable account in the general ledger and to the appropriate accounts in the accounts receivable ledger for Calderone Company.

Assume the following account balances at January 1, 2019:
 

Accounts Receivable (control account)	$	8,160
Accounts Receivable—John Gibrone		5,000
Accounts Receivable—Jim Garcia		2,120
Accounts Receivable—June Lin		1,040

  

GENERAL JOURNAL

DATE

DESCRIPTION

POST. REF.

DEBIT

CREDIT

2019

Jan.

8

Cash

500

Accounts Receivable/John Gibrone

500

Received partial payment on

account from John Gibrone

20

Sales Returns and Allowances

300

Sales Tax Payable

24

Accounts Receivable/Jim Garcia

324

Accept return of defective

merchandise, Credit

Memorandum 121; original sale

made on Sales Slip 11102 of

December 27, 2018

 

1. Prepare a schedule of accounts receivable for Calderone Company at January 31, 2019.
2. Should the total of your accounts receivable schedule agree with the balance of the Accounts Receivable account in the general ledger at January 31, 2019?

 

Question 9

On Deck Sports Memorabilia store sells a Babe Ruth rookie card for $5,600 on account. If the sales tax on the sale is 8%, what is the amount debited to Accounts Receivable.

Multiple Choice

 

    $5,152

    $6,048

    $5,600

    $5,592

 

Question 10

Kay Sadia sold merchandise for $9,000 subject to a 8% sales tax. The entry in the general journal will include a debit to Accounts Receivable for:

Multiple Choice

    $9,720.00.

    $8,460.00.

    $9,000.00.

    $8,994.00.

 

  

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