ACC 291T Week 1 Apply: Connect® Exercise (2019 New)

Review the Knowledge Check in preparation for this assignment.

Complete the Week 1 Exercise in Connect®.

Note: You have only one attempt available to complete this assignment.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date

On Deck Sports Memorabilia store sells a Babe Ruth rookie card for $3,700 on account. If the sales tax on the sale is 8%, what is the amount debited to Accounts Receivable.

Multiple Choice

$3,404

$3,996

$3,700

$3,692

Hour Place Clock Shop sold a grandfather clock for $2,100 subject to a 7% sales tax. The entry in the general journal will include a credit to Sales for

Multiple Choice

$2,100.00.

$1,911.00.

$2,289.00.

$2,091.00.

Main Street Distributors, a wholesale firm, made sales using the following list prices and trade discounts. What amount should be recorded for each sale?

List price of $3,600 and trade discounts of 30 percent and 20 percent.

List price of $4,300 and trade discounts of 30 percent and 20 percent.

List price of $2,650 and trade discounts of 20 percent and 10 percent.

Merchandise is sold on credit for $580 plus 5 percent sales tax. The journal entry to record the sale will include a debit to Accounts Receivable for

Multiple Choice

$580.00.

$585.80.

$582.90.

$609.00.

Record the following transactions of Lisa’s Fashion Boutique in a general journal. Lisa’s Fashion Boutique operates in a state with 8% sales tax. (Round your intermediate calculations and final answers to 2 decimal places):

The following transactions took place at Five Flags Amusement Park during May. Five Flags Amusement Park must charge 8 percent sales tax on all sales:

Vicente Company made sales using the following list prices and trade discounts. What amount should be recorded for each sale?

List price of $510 and trade discount of 20 percent.

List price of $610 and trade discount of 40 percent.

List price of $190 and trade discount of 30 percent.

A wholesale business sells goods with a list price of $860 and a trade discount of 25 percent. The net sales price is

Multiple Choice

$215.00.

$645.00.

$860.00.

$885.00.

Kay Sadia sold merchandise for $8,250 subject to a 8% sales tax. The entry in the general journal will include a debit to Accounts Receivable for:

Multiple Choice

$8,910.00.

$7,755.00.

$8,250.00.

$8,244.00.

Post the entries in the general journal below to the Accounts Receivable account in the general ledger and to the appropriate accounts in the accounts receivable ledger for Calderone Company.

Assume the following account balances at January 1, 2019:

Prepare a schedule of accounts receivable for Calderone Company at January 31, 2019.

Should the total of your accounts receivable schedule agree with the balance of the Accounts Receivable account in the general ledger at January 31, 2019?

If Lacy’s Department Store charges 8 percent sales tax, the amount of sales tax collected on a $525 sale would be

Multiple Choice

•

$4.20.

•

$420.00.

•

$42.00.

•

$567.00.

___________ are required to collect sales tax from customers, make periodic payments to the taxing authority, and pay the taxes due when reports are filed.

Multiple Choice

•

Wholesalers

•

Retailers

•

Manufacturers

•

Distributors

The Sales Returns and Allowances account is classified as

Multiple Choice

•

an asset account.

•

a contra asset account.

•

a contra revenue account.

•

a revenue account.

The amount used by wholesalers to record sales in the general journal is

Multiple Choice

•

the retail price.

•

the net price.

•

the list price.

•

the original price.

Which of the following describes the Sales Tax Payable account?

Multiple Choice

•

A liability account with a normal credit balance.

•

A liability account with a normal debit balance.

•

A revenue account with a normal credit balance.

•

An asset account with a normal debit balance.

Which of the following describes the Sales Returns and Allowances account?

Multiple Choice

•

A revenue account with a normal credit balance.

•

An expense account with a normal debit balance.

•

A contra expense account with a normal debit balance.

•

A contra revenue account with a normal debit balance.

The amount of the trade discount taken by the customer is:

Multiple Choice

•

recorded as an expense.

•

recorded as a revenue.

•

recorded as a liability.

•

not recorded directly as sales are recorded net of trade discounts.

Kay Sadia sold merchandise for $7,200 subject to a 8% sales tax. The entry in the general journal will include a debit to Accounts Receivable for:

Multiple Choice

•

$6,624.00.

•

$7,200.00.

•

$7,776.00.

•

$12,960.00.

Modern Candy, a wholesaler, sold a crate of candy for $360.00 on account to a customer with credit terms of 1/10, n/30. If the customer pays within the discount period, what would be the total amount credited to the sales account?

Multiple Choice

•

$360.00

•

$356.40

•

$363.60

•

$324.00

Kay Sadia sold merchandise for $7,200 subject to 8% sales tax.  The entry in the general journal to record the sale will include:

Multiple Choice

•

a debit to Sales Tax Payable for $576.00.

•

credit to Sales for $7,200.00.

•

a credit to Sales for $7,776.00.

•

a debit to Accounts Receivable for $7,200.00.