Chapter 10 Sales and Purchases

Down the River Canoe sold merchandise for cash to Low Rent Tours for $150, plus sales tax of $11. The journal entry for Down the River Canoe to record this transaction is:

• debit Cash, $161; credit Sales, $150, Sales Tax Payable, $11.
• debit Cash, $161; credit Accounts Receivable/Low Rent Tours, $161.
• debit Accounts Receivable/Low Rent Tours, $161; credit Cash, $161.
• debit Sales, $150, Sales Tax Payable, $11; credit Cash, $161.

Quick Supply sold office supplies for cash to Jet Set Travel for $45, plus sales tax of $3. The journal entry for Quick Supply to record this transaction is:

• debit Sales, $45, Sales Tax Payable, $3; credit Accounts Receivable/Jet Set Travel, $48.
• debit Accounts Receivable/Jet Set Travel, $48; credit Sales $45, Sales Tax Payable, $3.
• debit Accounts Receivable/Jet Set Travel, $48; credit Cash, $48.
• debit Cash, $48; credit Sales, $45, Sales Tax Payable, $3.

Rubber Compounds sold merchandise for cash to The Shoe Maker for $773, plus sales tax of $56. The journal entry for Rubber Compounds to record this transaction is:

• debit Cash, $829; credit Sales, $773, Sales Tax Payable, $56.
• debit Sales, $773, Sales Tax Payable, $56; credit Cash, $829.
• debit Accounts Receivable/The Shoe Maker, $829; credit Cash, $829.
• debit Cash, $829; credit Accounts Receivable/The Shoe Maker, $829.

The Hot Spot Donut Shop sold doughnuts on account to The Corner Church for $50. The journal entry for Hot Spot Donut Shop to record this transaction is:

• debit Accounts Receivable/The Corner Church, $50; credit Purchases, $50.
• debit Purchases, $50; credit Accounts Receivable/The Corner Church, $50.
• debit Accounts Receivable/The Corner Church, $50; credit Sales $50.
• debit Sales, $50; credit Accounts Receivable/The Corner Church, $50.

The Aquatic Kingdom sold Quiet Pets some newly hatched goldfish on account for $145, plus sales tax of $10. The journal entry for the Aquatic Kingdom to record this transaction is:

• debit Accounts Receivable/Quiet Pets, $155; credit Sales, $145, Sales Tax Payable, $10.
• debit Sales, $145, Sales Tax Payable, $10; credit Accounts Receivable/Quiet Pets, $155.
• debit Accounts Receivable/Quiet Pets, $155; credit Purchases, $155.
• debit Purchases, $155; credit Accounts Receivable/Quiet Pets, $155.

Tricky Ricky's Appliances sold merchandise on account to Smith Builders for $880, plus sales tax of $40. The journal entry for Tricky Ricky's Appliances to record this transaction is:

• debit Accounts Payable/Smith Builders, $920; credit Sales, $880, Sales Tax Payable, $40.
• debit Accounts Receivable/Smith Builders, $920; credit Sales, $880, Sales Tax Payable, $40.
• debit Sales, $880, Sales Tax Payable, $40; credit Accounts Payable/Smith Builders, $920.
• debit Sales, $880, Sales Tax Payable, $40; credit Accounts Receivable/Smith Builders, $920.

Sales tax is __________ to the price

• subtracted
• added
• multiplied
• divided

Mrs. Ray is buying some groceries.  They total to $35.50.  Sales tax is 4.5%.  When she goes to pay, how much will she owe?

• $1.60
• $37.10
• $40.00
• $51.48

A listing of vendor accounts, account balances, and the total amount due to all vendors.

• schedule of accounts payable

• list price

• terms of sale

• articles of incorporation

A form requesting that a vendor sell merchandise to a business.

• Requisition

• Terms of Sale

• Purchase Order

• Special Journal