ACC291T Week 1 Apply Exercise

  

Question 1

The following transactions took place at Five Flags Amusement Park during May. Five Flags Amusement Park must charge 8 percent sales tax on all sales: 

  

DATE

TRANSACTIONS

 

2019

 

May

1

Sold merchandise on account to Bill Gomez; issued Sales   Slip 1015 for $1,200 plus 8 percent sales tax, terms n/30.

 

15

Recorded cash sales, $3,200 plus 8 percent sales tax.

 

31

Received payment on account due from Bill Gomez for the   sale on May 1.

  

Question 2

A wholesale business sells goods with a list price of $980 and a trade discount of 25 percent. The net sales price is

  

Question 3

Hour Place Clock Shop sold a grandfather clock for $2,450 subject to a 7% sales tax. The entry in the general journal will include a credit to Sales for

Multiple Choice

  

Question 4

If Lacy's Department Store charges 8 percent sales tax, the amount of sales tax collected on a $275 sale would be

 Vicente Company made sales using the following list prices and trade discounts. What amount should be recorded for each sale? 

  

1. List price of $620 and trade      discount of 40 percent.
2. List price of $720 and trade      discount of 30 percent.
3. List price of $300 and trade      discount of 20 percent.  
4. List price of $620 and trade      discount of 40 percent.  

Question 6

Record the following transactions of Lisa’s Fashion Boutique in a general journal. Lisa's Fashion Boutique operates in a state with 8% sales tax. (Round your intermediate calculations and final answers to 2 decimal places):
 

  

DATE

TRANSACTIONS

 

2019

 

Feb.

2

Sold merchandise for cash totaling $3,400 to customers   using bank credit cards. Record the 21 percent discount on credit card sales   at time of sale.

 

15

Sold merchandise totaling $2,900 to customers using   American Express.

 

20

Received amount due from American Express, less their 22   percent discount, for sales made by customers using American Express on   February 15.

  

Question 5

Vicente Company made sales using the following list prices and trade discounts. What amount should be recorded for each sale?
 

1. List price of $620 and trade      discount of 40 percent.
2. List price of $720 and trade      discount of 30 percent.
3. List price of $300 and trade      discount of 20 percent.

  

Question 7

If a firm had sales of $44,000 during a period and sales returns and allowances of $3,400, its net sales were

Multiple Choice

  

Question 9

On Deck Sports Memorabilia store sells a Babe Ruth rookie card for $5,600 on account. If the sales tax on the sale is 8%, what is the amount debited to Accounts Receivable.

Multiple Choice

  

Question 10

Kay Sadia sold merchandise for $9,000 subject to a 8% sales tax. The entry in the general journal will include a debit to Accounts Receivable for:

Multiple Choice