Merchandise is sold on account for $3,500, and the sale is subject to sales tax

Question

Merchandise is sold on account for $3,500, and the sale is subject to sales tax of $175. The sales account should be credited for

$0

$175

$3,500

$3,675

2 points   

Question 2

The account that is credited for the Social Security tax withheld from the employee’s earnings is

Social Security Tax Expense

Payroll Excise Payable

Payroll Taxes Expense

Social Security Tax Payable

2 points   

Question 3

If a customer is given an allowance for damaged goods

Cash is debited

Sales Returns and Allowances is debited

Accounts Receivable is debited

Sales is debited

2 points   

Question 4

The allowance method is consistent with which of the following accounting concepts?

Matching principle

Historical Cost Principle

Period Concept

Entity Concept

2 points   

Question 5

In entering transactions concerned with sales of merchandise, which of the following accounts is NOT usually needed?

Sales

Sales Tax Payable

Sales Returns and Allowances

Sales Tax Receivable

2 points   

Question 6

The journal that should be used to record the return of merchandise for credit is the

Purchases journal

General journal

Cash payments journal

Accounts payable journal

2 points   

Question 7

A schedule of accounts receivable is prepared from

the list of customer accounts in the accounts receivable ledger

the general journal

the general ledger

the sales journal

2 points   

Question 8

The Employer’s Quarterly Federal Tax Return is

Circular E

Form W-2

a report of federal, Social Security, and Medicare tax withholding's

a report of each employee’s wages

2 points   

Question 9

Which of the following accounts would be found in the purchases journal?

Sales

Cash

Returns and Allowances

Freight-In

2 points   

Question 10

Under the allowance method of accounting for uncollectible accounts, the write-off of an account as uncollectible affects

the income statement

the balance sheet

all of these

none of these

2 points   

Question 11

The cash payments journal does NOT include which of the following?

the check number

a cash debit column

the date paid

the amount of check

2 points   

Question 12

Posting to the subsidiary journals is NOT done from the

sales journal

general journal

cash receipts journal

trial balance

2 points   

Question 13

The difference between net sales and cost of goods sold is called

goods available for sale

net purchases

the bottom line

gross profit

2 points   

Question 14

Workers’ compensation insurance provides insurance for employees who

lose their jobs

cannot pay their debts

are injured on the job

go on strike

2 points   

Question 15

The Sales Discount account is a(n)

revenue account

contra-revenue account

expense account

contra-expense account

2 points   

Question 16

For Income Statement reporting purposes, Freight-In is

subtracted from cost of goods sold

added to inventory

subtracted from net sales

added to purchases

2 points   

Question 17

Social Security Tax Payable and Medicare Tax Payable are classified as

owner’s equity

expenses

assets

liabilities

2 points   

Question 18

Under the direct write-off method, the account credited when an account is determined to be uncollectible is

Bad Debt Expense

Sales;

Allowance for Bad Debts

Accounts Receivable

2 points   

Question 19

Assume the gross amount of an invoice is $1,000 and a trade discount of 25% is allowed. The dollar amount of the trade discount is

$1,000

$750

$250

$25

2 points   

Question 20

Federal income tax that is withheld each pay period from the employee’s earnings is based on all of the following except

earnings of the employee

employee’s age

number of withholding allowances

marital status

2 points   

Question 21

Net realizable value is computed as

Sales – Bad Debt Expense

Accounts Receivable – Allowance for Bad Debts

Allowance for Bad Debts – Accounts Receivable

Accounts Receivable – Bad Debt Expense

2 points   

Question 22

A self-employment tax is a contribution to the

Social Security and Medicare programs

FUTA programs

SUTA programs

state government

2 points   

Question 23

A journal designed for entering only sales on account is called the

cash receipts journal

accounts receivable journal

sales journal

general journal

2 points   

Question 24

The difference between merchandise available for sale and the end-of- period merchandise inventory is called

net purchases

gross profit

cost of goods sold

net sales

2 points   

Question 25

Assume the gross amount of an invoice is $300 and a trade discount of 15% is allowed. The net amount is

$300

$255

$45

$15

$0

$175

$3,500

$3,675

Explanation / Answer

As per chegg guidelines we answer one question per post. But I have answered multiple questions. Kindly post remaining questions in next post Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Q1 3,500 Q2 Social Security Tax Payable Q3 Sales Returns and Allowances is debited

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