Accounting Ch 3 Smartbook

Fullington Industries sells inventory for $60,000, with $50,000 for cash and $10,000 on account. Recording this transaction will include a:

-credit to sales revenue for $60,000 -debit to accounts receivable for $10,000 -debit to cash for $50,000

Kingston Industries sells inventory for $100,000, with $70,000 for cash and $30,000 on account. The cost of the goods sold is $80,000. The entry to record the cost of inventory sold will include a:

-debit to cost of goods sold for $80,000 -credit to inventory for $80,000

On May 1, Meadow Industries sold inventory costing $30,000 to a customer for $50,000. At time of sale, the customer paid $40,000 to Meadow in cash and promised to pay the remaining $10,000 within the next 30 days. What amount of revenue should Meadow recognize on May 1?

50,000

a.Cash increases; Accounts Payable decreases. b.Service Revenue increases; Salaries Payable increases c.Advertising Expense increases; Cash decreases.

a. no b. no c. yes

Rawston Corporation sells inventory for $40,000, with $10,000 for cash and $30,000 on account. Recording this transaction will include a

debit to cash for $10,000

Callie Corporation sells inventory for $100,000, with $30,000 for cash and $70,000 on account. The cost of the inventory sold is $60,000. Recording this transaction will include a...

debit to cost of goods sold for $60,000

On August 1, Nighthawk Manufacturing sold inventory costing $70,000 to a customer for $100,000. At time of sale, the customer paid $90,000 to Nighthawk in cash and promised to pay the remaining $10,000 within the next 30 days. On August 1, Nighthawk will record a(n)

decrease in inventory of $70,000

balance sheet is a list of all accounts and their balances showing that debits equals credits.

false; trial balance

On June 1, Arlington Corporation sold inventory costing $60,000 to a customer for $80,000. At time of sale, the customer paid $60,000 to Arlington in cash and promised to pay the remaining $20,000 within the next 30 days. On June 1, Arlington will record an:

increase in Accounts Receivable of $20,000

On July 1, Farrow Industries sold inventory costing $20,000 to a customer for $30,000. At time of sale, the customer paid $25,000 to Farrow in cash and promised to pay the remaining $5,000 within the next 30 days. On July 1, Farrow will record a(n):

increase in Cost of Goods Sold of $20,000

The purpose of a general ledger is to

provide in a single location the list of transactions affecting each account and the account's balance

A list of all accounts and their balances at a particular date showing that debits equal credits is referred to as a(n)

trial balance