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  3. 1 which of the following describes the sales returns and...

Question: 1 which of the following describes the sales returns and...

Question details

1) 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.

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