CH 14
How is Accounts Receivable affected by the estimate of
uncollectible accounts?
The account is not affected.
What account title is used to journalize the Total Earnings column of the payroll register?
Salary Expense
The amount a business receives from the sale of an
item of merchandise is called the
selling price.
What column on a general ledger form is not on an
accounts payable ledger form?
Debit Balance
List the four parts of a journal entry.
Date
Debit
Credit
Source document
Accounts receivable that cannot be collected are called
uncollectible accounts.
What account title is used to journalize the Federal Income Tax column of the payroll register?
Employee Income Tax Payable
A tax on a sale of merchandise or services is called
a sales tax
How is cash short recorded in the account, Cash Short
and Over?
As a debit
In what order are transactions recorded in a journal?
By date
The difference between an asset’s account balance and
its related contra account balance is called
Book Value
What account title is used to journalize the Medicare Tax column of the payroll register?
Medicare Tax Payable
What column on a general ledger form is not on an
accounts receivable ledger form?
Credit Balance
What is recorded in the general amount columns of the
cash payments journal?
Cash payment transactions that do not occur often
Which journal columns are used to record buying
supplies on account?
General Debit
General Credit
Why is a customer account reopened when the account
is paid after being previously written off?
To show an accurate credit history
For a monthly schedule depositor, when are payroll
taxes paid to the federal government?
By the 15th day of the following month
How are sales tax rates usually stated?
As a percent of sales
the maximum outstanding balance
allowed to a customer by a vendor.
credit limit
Which journal columns are used to record receiving cash from sales?
Cash Debit
Sales Credit
A written and signed promise to pay a sum of money at a specified time is called a
promissory note.
What account title is used to journalize the Social Security Tax column of the payroll register?
Social Security Tax Payable
What is the title of the general ledger account used to
summarize the total amount due from all charge
customers?
Accounts Receivable
In which column of the cash payments journal are the
amounts that are posted individually to the accounts
payable ledger?
Accounts Payable Debit
Which journal columns are used to record sales on account?
General Debit
Sales Credit