Chapter 07 – Accounting for Sales and Accounts Receivable
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78. Selected balances from the general ledger of the Valley Video Rentals on May 31, 2013,
are listed below. Use the appropriate data to prepare the Revenue section of the firm’s income
statement for the month ended May 31, 2013.
Chapter 07 – Accounting for Sales and Accounts Receivable
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Matching Questions
84. Match the accounting terms with the description by entering the proper number.
1. A journal used to record only one type of
transaction
8
2. A business that sells services
22
3. A system that allows the sale of services or goods
with the understanding that payment will be made at a
later date
11
4. A business that sells goods that it has produced
6
5. An established retail price
12
6. A firm’s acceptance of a return of goods from a
customer
2
7. A listing of all balances of the accounts in the
accounts receivable subsidiary ledger
10
8. A subsidiary ledger that contains credit customer
accounts
21
9. A business that sells goods purchased for resale
3
10. The list price less all trade discounts
15
11. A note verifying that a customer’s account is being
reduced by the amount of a sales return or sales
allowance plus any sales tax that may have been
involved
5
12. A ledger dedicated to accounts of a single type
and showing details to support a general ledger
account
16
13. A special journal used to record sales of
merchandise on credit
18
14. The difference between the balance in the Sales
account and the balance in the Sales Returns and
Allowances account
14
15. A reduction in the price originally charged to
customers for goods or services
13
16. A business that manufactures or distributes goods
to retail businesses or large consumers such as hotels
and hospitals
19
17. A business that sells directly to individual
consumers
20
18. A reduction from list price
1
19. An account that links a subsidiary ledger and the
general ledger since its balance summarizes the
balances of the accounts in the subsidiary ledger
9