ACC291T Week 1 Apply Exercise

Question 1
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:

DATE TRANSACTIONS
2019
May 1 Sold merchandise on account to Bill Gomez; issued Sales Slip 1015 for $1,200 plus 8 percent sales tax, terms n/30.
15 Recorded cash sales, $3,200 plus 8 percent sales tax.
31 Received payment on account due from Bill Gomez for the sale on May 1.
• Sold merchandise on account to Bill Gomez; issued Sales Slip 1015 for $1,200 plus 8 percent sales tax, terms n/30.
• Recorded cash sales, $3,200 plus 8 percent sales tax.
• Received payment on account due from Bill Gomez for the sale on May 1.

Question 2
A wholesale business sells goods with a list price of $980 and a trade discount of 25 percent. The net sales price is
Multiple Choice
$245.00.
$735.00.
$980.00.
$1,005.00.

Question 3
Hour Place Clock Shop sold a grandfather clock for $2,450 subject to a 7% sales tax. The entry in the general journal will include a credit to Sales for
Multiple Choice
$2,450.00.
$2,229.50.
$2,670.50.
$2,441.00.

Question 4
If Lacy's Department Store charges 8 percent sales tax, the amount of sales tax collected on a $275 sale would be
Multiple Choice
$22.00.
$220.00.
$34.38.
$3.44.

Question 5
Vicente Company made sales using the following list prices and trade discounts. What amount should be recorded for each sale?

1. List price of $620 and trade discount of 40 percent.
2. List price of $720 and trade discount of 30 percent.
3. List price of $300 and trade discount of 20 percent.

Question 6
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):

DATE TRANSACTIONS
2019
Feb. 2 Sold merchandise for cash totaling $3,400 to customers using bank credit cards. Record the 21 percent discount on credit card sales at time of sale.
15 Sold merchandise totaling $2,900 to customers using American Express.
20 Received amount due from American Express, less their 22 percent discount, for sales made by customers using American Express on February 15.

• Sold merchandise for cash totaling $3,400 to customers using bank credit cards. Record the 21 percent discount on credit card sales at time of sale.
• Sold merchandise totaling $2,900 to customers using American Express.

• Received amount due from American Express, less their 22 percent discount, for sales made by customers using American Express on February 15.

Question 7
If a firm had sales of $44,000 during a period and sales returns and allowances of $3,400, its net sales were
Multiple Choice
$47,400.
$44,000.
$40,600.
$3,400.

Question 8
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:


Accounts Receivable (control account) $ 8,160
Accounts Receivable—John Gibrone 5,000
Accounts Receivable—Jim Garcia 2,120
Accounts Receivable—June Lin 1,040
________________________________________

GENERAL JOURNAL
DATE DESCRIPTION POST.
REF. DEBIT CREDIT
2019
Jan. 8 Cash 500
Accounts Receivable/John Gibrone 500
Received partial payment on
account from John Gibrone

20 Sales Returns and Allowances 300
Sales Tax Payable 24
Accounts Receivable/Jim Garcia 324
Accept return of defective
merchandise, Credit
Memorandum 121; original sale
made on Sales Slip 11102 of
December 27, 2018
________________________________________

1. Prepare a schedule of accounts receivable for Calderone Company at January 31, 2019.
2. 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?

Question 9
On Deck Sports Memorabilia store sells a Babe Ruth rookie card for $5,600 on account. If the sales tax on the sale is 8%, what is the amount debited to Accounts Receivable.
Multiple Choice

$5,152
$6,048
$5,600
$5,592

Question 10
Kay Sadia sold merchandise for $9,000 subject to a 8% sales tax. The entry in the general journal will include a debit to Accounts Receivable for:
Multiple Choice
$9,720.00.
$8,460.00.
$9,000.00.
$8,994.00.


ANSWER WILL BE SENT ON EMAIL.