ACC 291T Week 1 Apply: Connect® Exercise

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

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

Multiple Choice

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$4.20.

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$420.00.

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$42.00.

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$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

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Wholesalers

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Retailers

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Manufacturers

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Distributors

The Sales Returns and Allowances account is classified as

Multiple Choice

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an asset account.

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a contra asset account.

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a contra revenue account.

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a revenue account.

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

Multiple Choice

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the retail price.

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the net price.

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the list price.

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the original price.

Which of the following describes the Sales Tax Payable account?

Multiple Choice

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A liability account with a normal credit balance.

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A liability account with a normal debit balance.

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A revenue account with a normal credit balance.

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An asset account with a normal debit balance.

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

Multiple Choice

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A revenue account with a normal credit balance.

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An expense account with a normal debit balance.

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A contra expense account with a normal debit balance.

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A contra revenue account with a normal debit balance.

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

Multiple Choice

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recorded as an expense.

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recorded as a revenue.

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recorded as a liability.

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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

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$6,624.00.

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$7,200.00.

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$7,776.00.

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$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

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$360.00

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$356.40

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$363.60

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$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

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a debit to Sales Tax Payable for $576.00.

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credit to Sales for $7,200.00.

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a credit to Sales for $7,776.00.

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a debit to Accounts Receivable for $7,200.00.