Professional Documents
Culture Documents
Cash8,730
d.Accounts Payable.....................................9,000
Merchandise Inventory.......................................270
Cash8,730
74.On July 9, Neal Company sells goods on credit to Al Dolan for $4,000, terms 1/10, n/60. Neal
receives payment on July 18. The entry by Neal on July 18 is:
a.Cash...............................................4,000
Accounts Receivable.........................................4,000
b.Cash...............................................4,000
Sales Discounts...........................................40
Accounts Receivable.........................................3,960
c.Cash...............................................3,960
Sales Discounts...........................................40
Accounts Receivable.........................................4,000
d.Cash...............................................4,040
Sales Discounts...........................................40
Accounts Receivable.........................................4,000
75.On November 2, 2010, Griffey Company has cash sales of $4,200 from merchandise having a
cost of $3,000. The entries to record the day's cash sales will include:
a.a $3,000 credit to Cost of Goods Sold.
b.a $4,200 credit to Cash.
76. A credit sale of $1,600 is made on April 25, terms 2/10, n/30, on which a return of $100 is
granted on April 28. What amount is received as payment in full on May 4?
a.$1,470
b.$1,568
c.$1,600
d$1,500
77. The entry to record the receipt of payment within the discount period on a sale of $750
with terms of 2/10, n/30 will include a credit to
a.Sales Discounts for $15.
b.Cash for $735.
c.Accounts Receivable for $750.
d.Sales for $750.
78. The collection of a $700 account within the 2 percent discount period will result in a
a.debit to Sales Discounts for $14.
b.debit to Accounts Receivable for $686.
c.credit to Cash for $686.
79. Company X sells $400 of merchandise on account to Company Y with credit terms of
2/10, n/30. If Company Y remits a check taking advantage of the discount offered, what is the
amount of Company Y's check?
a.$280
b.$392
c.$360
d.$320
80. Birk Company sells merchandise on account for $3,000 to Kiner Company with credit
terms of 2/10, n/30. Kiner Company returns $600 of merchandise that was damaged, along with a
check to settle the account within the discount period. What is the amount of the check?
a.$2,940
b.$2,952
c.$2,400
d.$2,352
81. The collection of a $900 account after the 2 percent discount period will result in a
a.debit to Cash for $882.
b.debit to Accounts Receivable for $900.
c.debit to Cash for $900.
d.debit to Sales Discounts for $18.
82. The collection of a $700 account after the 2 percent discount period will result in a
a.debit to Cash for $686.
b.credit to Accounts Receivable for $700.
c.credit to Cash for $700.
d.debit to Sales Discounts for $14.
Answer 73
d.Accounts Payable.....................................9,000
Merchandise Inventory.......................................270
Cash8,730
Answer 74
c.Cash...............................................3,960
Sales Discounts...........................................40
Accounts Receivable.........................................4,000
Answer 75
c.a $3,000 credit to Merchandise Inventory.
The entry to record day's cash sales will be credited to merchandise
inventory with cost price of $ 3,000.
Answer 76
a.$1,470
Sales value $ 1,600
less: returns $ -100
Net sales $ 1,500
less: discount @ 2% $ 30
Cash to be received $ 1,470
Answer 77
c.Accounts Receivable for $750.
Cash will be debited with $ 735($ 750 less 2 % * $ 750) and sales
discount debited with $ 15(2% * $ 750) and accounts receivable
credited with $ 750(sale value).
Answer 78
a.debit to Sales Discounts for $14.
Answer 79
b.$392
$ 400 less 2 % * $ 400 = $ 392
Answer 80
d.$2,352
$ 2,400($ 3,000 less $ 600) less 2 % * $ 400 = $ 2,352
Answer 81
c.debit to Cash for $900.
No discount will be allowed after the discount period. So, cash will be
debited with $ 900, sale value.
Answer 82
c.credit to Cash for $700.
No discount will be allowed after the discount period. So, cash will be
debited with $ 700, sale value.
735
2352