Sales
What transaction is recorded in the Sales Journal?
Only sales on account
Cash Debit
It is a Cost account with a debit balance.
Every transaction recorded in the Cash Payments Journal will include this account being credited.
Cash
Which accounts must be listed first in the General Journal?
Always the debited accounts. Debits before credits.
Name the accounts involved with the transaction recorded in the Sales journal and how they are affected.
Sales and Sales Tax Payable are increased with a credit and Accounts Receivable/Customer Name is increased with a debit
What is written in the accounts receivable subsidiary ledger and the general ledger when posting from the cash receipts journal?
CR and the page number of the cash receipts journal
What is written in the posting reference column of the Purchases Journal?
The account numbers for the vendors in the Accounts Payable Subsidiary Ledger when the individual amounts have been posted.
What is the normal balance for the Purchases Discount account?
Credit
What is the source document for the transaction supplies bought on account?
Memorandum
What needs to be posted from the Sales Journal?
Individual amounts need to be posted to the Accounts Receivable Subsidiary Ledger, and totals need to be posted to the Accounts Receivable controlling account, the Sales account in the General Ledger, and the Sales Tax Payable account in the General Ledger.
Name the accounts and how they change (debited or credited) when the business receives cash on account and the customer has not been offered a discount.
Cash is debited and Accounts Receivable is credited
What is written in the posting reference columns of the Accounts Payable Subsidiary Ledger and the General Ledger when posting from the Purchases Journal?
P and the page number of the purchases journal
How do you calculate a purchases discount if terms are stated as 2/10, net 30?
When returning merchandise, what accounts are debited and credited?
Accounts Payable and vendor account are debited, Purchases Returns and Allowances is credited
The account numbers from the accounts receivable subsidiary ledger after the individual amount has been posted.
List the special columns in the Cash Receipts Journal.
Accounts Receivable credit, Sales credit, Sales Tax Payable credit, Sales Discount debit, Cash debit
What transaction is recorded in the Purchases journal?
Purchase of merchandise on account
When posting from the Cash Payments journal, what abbreviation will be used to create an audit trail?
CP and the page number
When a customer returns merchandise, list the accounts affected and whether they are debited or credited.
Sales Returns and Allowances is debited, Sales Tax Payable is debited and Accounts Receivable is credited.
What is written in the posting reference columns of the Accounts Receivable Subsidiary Ledger and the General Ledger when posting from the Sales Journal?
S and the page number of the Sales Journal
What is the formula to calculate sales tax?
Sales x Rate of Sales Tax
List the special columns in the Purchases Journal.
Purchases Debit and Accounts Payable Credit
List the special columns in the Cash Payments Journal.
Accounts Payable debit, Purchases Discount credit, Cash credit
List the source documents for the following:
1. Customer Returning Merchandise
2. Business Returning Merchandise to Vendor
Make sure you list them in the correct order.
1. Credit Memorandum
2. Debit Memorandum