Vocab 1
A specialized computer used to collect, store, and report all the information about a sales transaction
POS Point of Sale Terminal
The report that summarizes the cash and credit card sales of a point-of-sale terminal.
Terminal Summary
A tax on a sale of merchandise or services.
Sales Tax
A batch report is a detailed report of cash sales during a specific period of time.
false
Sales Tax Payable has a normal credit balance
true
The process of preparing a batch report from a point-of sale terminal
Batching out
A special journal used to record only cash receipt transactions
Cash Receipts journal
The amount a business adds to the cost of merchandise to establish the selling price.
MArk Up
Only the federal government can exempt from sales taxes some types of merchandise or sales to certain types of customers.
false
Regardless of when payment is received, the revenue should be recorded when a sale is made, not on the date cash is received.
true
A cash discount on a sale taken by the customer.
Sales Discount
The amount a business receives from the sale of an item of merchandise.
Selling Price
A listing of customer accounts, account balances, and total amount due from all customers.
Schedule of Account Receivable
The amount of sales tax collected is a liability of a business until paid to the government
true
The total of each general amount column of a cash receipts journal is posted to the corresponding general ledger account.
false
A subsidiary ledger containing all accounts for charge customers.
Accounts Receivable ledger
A special journal used to record only sales of merchandise on account.
Sales Journal
When merchandise is sold on account and sales tax is also collected,
a. Accounts Receivable is credited for the total sale and sales tax.
b. the Accounts Receivable balance is increased.
c. Sales is debited for the price of the goods.
d. the sales tax is not reported.
b. the Accounts Receivable balance is increased.
The total amount of credit card and debit card sales transactions are recorded as a debit to cash, since the business will receive cash for the entire amount.
false
A terminal summary is also known as a Z tape.
true
A sale in which the customer pays for the total amount of the sale at the time of the transaction.
Cash Sale
A report of credit card sales produced by a point-of-sale terminal.
Batch Report
Marris Company records a $1,000.00 sale on account on May 23. On June 6, the customer pays the account. The sale should be recorded in the
a. sales journal on May 23.
b. cash receipts journal on May 23.
c. sales journal on June 6.
d. cash receipts journal on June 6.
a. sales journal on May 23
Separate transactions are recorded for cash, credit card, and debit card totals listed on a
terminal summary.
false
The balance of Accounts Receivable should equal the total of the schedule of accounts receivable.
true