Chapter 07 – Accounting for Sales and Accounts Receivable
61. Hour Place Clock Shop sold a grandfather clock for $2,250 subject to a 9% sales tax. The
entry in the sales journal will include a debit to Accounts Receivable for
62. Hour Place Clock Shop sold a grandfather clock for $2,250 subject to a 9% sales tax. The
entry in the sales journal will include a credit to Sales for
63. Which of the following describes Sales Returns and Allowances?
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66. For each of the transactions listed below, identify the journal that should be used to record
the transaction. Use CR for cash receipts journal, CP for cash payments journal, S for sales
journal, P for purchases journal, and G for general journal.
A. Accepted a return of merchandise from a credit customer
B. Collected sums on account from credit customers
C. Gave an allowance for damaged merchandise
D. Purchased merchandise on credit
E. Received an additional cash investment from the owner
F. Sold merchandise for cash
G. Sold merchandise on credit
H. Issued a check to pay a creditor on account
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71. Bradley’s Appliance Store had the following transactions during the month of May 2013.
Record the transactions on page 5 of a sales journal and page 8 of a general journal. Total,
prove, and rule the sales journal as of May 31.
