Accounting Chapter 16 - Special Journals: Sales and Cash Receipts
True
Two major advantages of a special journal are that it saves time in recording and posting business transactions.
True
When first totaling amount columns in a special journal always use a pencil.
False
When posting from a special journal, post information moving from top to bottom rather than left to right.
False
When preparing a schedule of accounts receivable, enter only amounts that have a balance.
False
After a posting has been made from the sales or cash receipts journal to a customer's account, the customer account number is entered in the Posting Reference column of the journal.
Cash Receipts Journal
All transactions in which cash is received are recorded in the __.
True
Amounts recorded in the General Credit column of the cash receipts journal are to be posted when the transaction is journalized.
True
Cash discounts are computed on the total amount of merchandise sold and not the sales tax
False
Cash sales are recorded in the sales journal.
True
Customer accounts are listed in alphabetical order in the accounts receivable subsidiary ledger.
True
Every transaction recorded in the cash receipts journal results in a debit to cash.
True
Footings are always completed in pencil, and column totals are written in ink.
False
Merchandising businesses sell strictly on a cash basis.
True
The cash register tape is the source document for recording cash and bank card sales.
True
The column totals from the sales journal are posted to three separate general ledger accounts.
False
The individual amounts in the Accounts Receivable Debit column of the sales journal are to be posted on a monthly basis
Sales Journal
The sale of merchandise on account is recorded in the __.
False
The sales journal is used to record any sale of merchandise, whether on account or for cash.
True
The subsidiary ledger and the controlling account can balance even if an amount was posted to the wrong account.
Footing
A column total written in small pencil figures is called a( n ) __.
Special Journal
A( n ) __ , which simplifies the journalizing and posting process, has special columns that are used for recording specific types of business transactions
Schedule of Accounts Receivable
A( n ) __ is a report listing each charge customer's name and account balance and the total amount due from all charge customers.
False
Most transactions recorded in the cash receipts journal result in a debit to Accounts Receivable and a credit to Cash.
False
Only customer accounts with balances are entered on the schedule of accounts receivable.
True
Only the sale of merchandise on account is recorded in the sales journal.
False (everyday)
Postings are made to customer accounts usually at the end of the week.
True
Sales taxes are not usually charged on sales of merchandise to government agencies.
True
The total of an amount column in a special journal is posted to the general ledger account named in the column heading.
