Chapter 7 (“Accounting for Sales and Accounts Receivable”)

Question 1

Aging of Accounts Receivable

Answer 1

A schedule of accounts receivalbe that shows how long amounts have been outstanding

Question 2

The most common types of credit sales are:
-
-
-
-

Answer 2

• open-account credit
• business credit cards　Shellのクレジットカードとか
• bank credit cards Visa/MasterCardとか
• cards issued by credit card companies. Amexとか

Question 3

Which of the following statements is not correct?

• Postings to the accounts receivable subsidiary ledger are usually made once a month on the last day of the month.
• Before any posting to the subsidiary ledger takes place, the equality of the debits and credits recorded in the sales journal are proved by comparing the column totals.
• Before any posting to the general ledger takes place, the equality of the debits and credits recorded in the sales journal are proved by comparing the column totals.
• When special journals are used, postings to the accounts receivable account in the general ledger are usually made once a month on the last day of the month.

Answer 3

-Postings to the accounts receivable subsidiary ledger are usually made once a month on the last day of the month.

Question 4

The Sales Returns and Allowances account is presented

• on the balance sheet as a deduction from Accounts Receivable.
• on the income statement as a deduction from Sales.
• on the income statement as an addition to Sales.
• on the balance sheet as a deduction from Capital.

Answer 4

-on the income statement as a deduction from Sales.

Question 5

In a firm that uses special journals, the collection of sums on account from credit customers is recorded in the

• cash payments journal.
• cash receipts journal.
• sales journal.
• purchases journal.

Answer 5

-cash receipts journal.

Question 6

In a firm that uses special journals, the acceptance of a return of merchandise from a credit customer is recorded in the

• cash receipts journal.
• sales journal.
• cash payments journal.
• general journal.

Answer 6

-general journal.

Question 7

Which of the following statements is not correct?

• Postings to the accounts receivable subsidiary ledger are usually made once a month on the last day of the month.
• Before any posting to the subsidiary ledger takes place, the equality of the debits and credits recorded in the sales journal are proved by comparing the column totals.
• Before any posting to the general ledger takes place, the equality of the debits and credits recorded in the sales journal are proved by comparing the column totals.
• When special journals are used, postings to the accounts receivable account in the general ledger are usually made once a month on the last day of the month.

Answer 7

Postings to the accounts receivable subsidiary ledger are usually made once a month on the last day of the month.