Chapter 7 Bookkeeping

A firm that sells goods that it purchases for re-sale is a. service business. merchandising business. manufacturing business. non-profit business.

merchandising business.

All of the following are examples of the most common types of credit sales, except. closed-account credit cards. business credit cards. bank credit cards. cards issued by credit card companies.

closed-account credit cards.

After all postings have been made, the total of the schedule of accounts receivable should equal

the balance of the Accounts Receivable account in the general ledger.

Merchandise is sold on credit for $600 plus 5 percent sales tax. The journal entry to record the sale will include a debit to Accounts Receivable for

$630.00.

If Lacy's Department Store charged 8 percent sales tax, the amount of sales tax collected on a $225 sale would be

18.00

If a firm had sales of $50,000 during a period and sales returns and allowances of $4,000, its net sales were

$46,000.

Which of the following is not one of the three basic types of business? Service Merchandising Wholesale Manufacturing

Wholesale

The Sales Returns and Allowances account is classified as

a contra revenue account.

The Sales account is classified as

a revenue account.