When completing a worksheet:the ending inventory amount appears in the income statement debit column.

Sue’s Jewelry sold 30 necklaces for $25 each to a credit customer. The invoice included a 6% sales tax and payment terms of 2/10, n/30. In addition, 5 necklaces were returned prior to payment. The entry to record the return would include:a credit to Sales Tax Payable for $7.50.a debit to Sales Returns and Allowances for $125.00.a debit to Accounts Receivable for $132.50.a debit to Sales Returns and Allowances for $132.50.Flag this QuestionQuestion 5 2.5 ptsWhen completing a worksheet:the ending inventory amount appears in the income statement debit column.the beginning inventory amount appears in the balance sheet debit column of the worksheet.the ending inventory amount appears in the unadjusted trial balance debit column of the worksheet.the beginning inventory amount appears in the adjustment credit column.Flag this QuestionQuestion 6 2.5 ptsSales Returns and Allowances is a contra-revenue account with a normal debit balance.TrueFalseFlag this QuestionQuestion 7 2.5 ptsAn example of a subsidiary ledger is the revenue ledger.TrueFalseFlag this QuestionQuestion 8 2.5 ptsAccounts in the accounts receivable subsidiary ledger are listed alphabetically.TrueFalseFlag this QuestionQuestion 9 2.5 ptsThe balance in the Accounts Receivable account is $2,200 debit. Therefore, the balances in the subsidiary ledger should be $2,000.TrueFalseFlag this QuestionQuestion 10 2.5 ptsThe controlling account is found in the subsidiary ledger and it summarizes or controls the general ledger account.TrueFalseFlag this QuestionQuestion 11 2.5 ptsThe accounts receivable subsidiary ledger shows the amount collected from each customer.TrueFalseFlag this QuestionQuestion 12 2.5 ptsWhen you record the entry to the subsidiary ledger and place the checkmark in the PR column, it is necessary to post to the Accounts Receivable controlling account.TrueFalseFlag this QuestionQuestion 13 2.5 ptsThe general ledger and the accounts receivable subsidiary ledger are the same book.TrueFalseFlag this QuestionQuestion 14 2.5 ptsUsing the perpetual inventory system, the purchase of merchandise on account would include a:debit to Merchandise Inventory and a credit to Accounts Payable.debit to Sales and a credit to Accounts Receivable.debit to Accounts Payable and a credit to Merchandise Inventory.debit to Merchandise Inventory and a credit to Sales.Flag this QuestionQuestion 15 2.5 ptsThe return of merchandise to the supplier for credit using the perpetual inventory system would include a:debit to Accounts Payable and a credit to Merchandise Inventory.debit to Accounts Receivable and a credit to Accounts Payable.debit to Accounts Payable and a credit to Purchases Returns and Allowances.debit to Sales Returns and Allowances and a credit to Merchandise Inventory.Flag this QuestionQuestion 16 2.5 ptsThe recording of the cost of freight-in under the perpetual inventory system would include a:credit to Freight-In.credit to Merchandise Inventory.debit to Freight-In.debit to Merchandise Inventory.Flag this QuestionQuestion 17 2.5 ptsThe account used in perpetual inventory to record the cost of inventory used to make the sale is:Purchases Returns and Allowances.Purchases Discounts.Purchases.Cost of Goods Sold.Flag this QuestionQuestion 18 2.5 ptsReturned merchandise for credit under the perpetual inventory method. This will be recorded with:a debit to Accounts Payable and a credit to Merchandise Inventory.a debit to Accounts Payable and a credit to Purchases Returns and Allowances.a debit to Purchase Returns and Allowances and a credit to Merchandise Inventory.a credit to Accounts Payable and a debit to Merchandise Inventory.Flag this QuestionQuestion 19 2.5 ptsWhen using a perpetual inventory method, what account(s) must be updated when a sale is recognized?SuppliesCost of Goods SoldBoth A and C are correct.Merchandise InventoryFlag this QuestionQuestion 20 2.5 ptsMerchandise Inventory is what type of account?Contra-AssetExpenseAssetLiabilityFlag this QuestionQuestion 21 2.5 ptsReturned merchandise for credit on account. The perpetual inventory system is in use. This will be recorded with:a debit to an asset and a credit to a liability.a debit to a liability and a credit to an asset.a debit to a liability and a credit to an expense.a debit to an asset and a credit to an expense.Flag this QuestionQuestion 22 2.5 pts

 
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