26 multi corporation sold merchandise for 4 450 to susan on credit the cost of goods 4307064

26 multi corporation sold merchandise for 4 450 to susan on credit the cost of goods 4307064

26) Multi Corporation sold merchandise for $4,450 to Susan on credit. The cost of goods sold was $1,185. Assuming that the firm is following a perpetual inventory system, it will record $4,450 in the:

A) general journal.

B) Accounts Receivable DR, Sales Revenue CR column of the sales journal.

C) Merchandise Inventory DR column of the purchases journal.

D) Accounts Receivable CR column of cash receipts journal.

27) Hexa Corporation sold a product on credit for $2,235 to Merin. The cost of goods sold was $1,324. Assuming that the firm is following a perpetual inventory system and using a sales journal, it will record $2,235 in the:

A) Accounts Receivable CR, Sales Revenue DR column.

B) Cost of Goods Sold DR, Merchandise Inventory CR column.

C) Merchandise Inventory DR, Cost of Goods Sold CR column.

D) Accounts Receivable DR, Sales Revenue CR column.

28) Tangent Corporation sold a product for $7,150 to Michael on credit. The cost of goods sold is $5,650.Assuming that the firm is following a perpetual inventory system and using a sales journal, it will record $5,650 in the:

A) Accounts Receivable DR, Sales Revenue CR column.

B) Cost of Goods Sold DR, Merchandise Inventory CR column.

C) Merchandise Inventory DR, Cost of Goods Sold CR column.

D) Sales Revenue DR, Accounts Receivable CR column.

29) Which of the following is true of a sales journal prepared under the perpetual inventory system?

A) It includes a Cost of Goods Sold DR, Merchandise Inventory CR column.

B) It records both cash and credit sales transactions.

C) All transactions recorded in a sales journal are also entered in the general journal.

D) It cannot be used with a perpetual inventory system.

30) If a business uses the periodic inventory system, the sales journal:

A) will record both the cash and credit sales.

B) will include a Purchase DR and Account Receivable CR column.

C) will exclude the Accounts Receivable DR and Sales Revenue CR column.

D) will not include the Cost of Goods Sold DR and Merchandise Inventory CR column.

31) Which of the following is true of posting from a sales journal to the general ledger?

A) Entries in the sales journal are posted to either the accounts receivable subsidiary ledger or the general ledger.

B) Individual accounts receivable are posted daily from the sales journal to the accounts receivable subsidiary ledger.

C) Though the sales journal is posted monthly to the subsidiary ledger, it is a reliable record of the amount receivable from each customer.

D) Under a perpetual inventory system, the sales journal will not have the Cost of Goods Sold DR and Merchandise Inventory CR column.

32) When a sales journal is posted to the general ledger at the end of the month, the accountant totals the Accounts Receivable DR, Sales Revenue CR and Cost of Goods Sold DR, Merchandise Inventory CR columns. This process is commonly called:

A) scalping.

B) ticking.

C) footing.

D) framing.

33) Which of the following is true of a cash receipts journal?

A) In a cash receipts journal, cash sales are recorded in the Accounts Receivable CR column and the Cash DR column.

B) In a cash receipts journal, collections on account are recorded in the Accounts Receivable DR column and the Cash DR column.

C) It ignores the miscellaneous cash receipt transactions.

D) In a cash receipts journal, the sales for cash will have entries in the Sales Revenue CR column.

34) In a perpetual inventory system, when cash sales are recorded:

A) merchandise inventory decreases and cost of goods sold decreases.

B) sales revenue increases and cash decreases.

C) sales revenue increases and equity decreases.

D) merchandise inventory decreases and equity decreases.

35) Which of the following is not included in a typical cash receipts journal of a business using the perpetual inventory system?

A) Interest Revenue CR column

B) Cost of Goods Sold DR, Merchandise Inventory CR column

C) Sales Revenue CR column

D) Other Accounts CR column

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