Merchandising

When giving someone store credit, how would you journal this?

• Debit Sales Returns and Allowance, Credit Inventory

• Debit Sales Returns and Allowance, Credit AP

• Debit Cash, Credit Store Credit

• Debit Store Credit Account, Credit Inventory Account

When looking at a subsidiary ledger, Account 130, what is my division and which is my position?

• 30 is my division, 100 is my position

• 13 is my division, 0 is my position

• Your division is the product line, and your position is your job title in the marketing department.
• 100 is my division, 30 is my position

How does a store credit affect the financial statements of a business?

• Increases cash flow

• Decreases liabilities

• Increases accounts receivable

• Increases liabilities

What are the debits and credits for the following: An item was returned to your store for cash. There was sales tax on this sale.

• Debit: Cash, Credit: Sales Tax Payable

  Credit: Sales Returns and Allowances

• Debit: Cash

  Debit: AR , Credit: Cash

• Debit: Cash Receivable, Credit: Inventory

• Debit: Sales Returns & Allowances

  Debit: Sales Tax Payable Credit: Cash

What are my debits and credits of this problem: Josh Co. returned an item to Walmart and was given store credit. Book this as the Vendor.

• Debit Purchases, Credit Inventory

• Debit Store Credit Liability, Credit Cash

• Debit Expense, Credit Accounts Payable
• Debit Purchase Sales and Returns, Credit Accounts Payable

Which of the following transactions would require a journal entry in a perpetual inventory system?

• Monthly inventory count

• Sale of merchandise

• Annual financial audit

• Employee salary payment

Which account is affected when a customer returns merchandise for a refund?

• Accounts Receivable

• Sales Returns and Allowances

• Inventory

• Cash

What is a Cash Disbursement Journal used for?

• To track inventory levels in a business.
• To record all cash receipts made by a business.
• To manage employee payroll records.
• To record all cash outflows/payments made by a business.

What type of balance sheet account is "Sales Returns and Allowances"

• Asset account
• Liability account
• Contra [revenue] account

• Equity account

What is a purchase journal used for?

• A purchase journal is used for recording credit (on account) purchases.

• A purchase journal is used for tracking cash sales.
• A purchase journal is used for managing employee payroll.
• A purchase journal is used for recording inventory levels.