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?
List price of $620 and trade discount of 40 percent.
List price of $720 and trade discount of 30 percent.
List price of $300 and trade discount of 20 percent.
List price of $620 and trade discount of 40 percent.
Question 6
Record the following transactions of Lisas 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?
List price of $620 and trade discount of 40 percent.
List price of $720 and trade discount of 30 percent.
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
