Solved

A Company Uses a Cash Receipts Journal (Periodic System)as Shown

Question 118

Multiple Choice

A company uses a cash receipts journal (periodic system) as shown below:
 Accounts  Other  Account  Sales  Receivable  Accounts  Date  Credited  Explanation  Cash Dr.  Disc. Dr  Cr.  Sales Cr.  Cr. \begin{array} {|c|c|c|c|c|c|c|c| } \hline & & & & & \text{ Accounts } & & \text{ Other }\\ & \text{ Account } & & & \text{ Sales } & \text{ Receivable } & & \text{ Accounts }\\\text{ Date } & \text{ Credited } & \text{ Explanation } & \text{ Cash Dr. } & \text{ Disc. Dr } & \text{ Cr. } & \text{ Sales Cr. } & \text{ Cr. }\\\hline\\\hline\\\hline\end{array}
How would the following transactions be recorded in this cash receipts journal?
12/10 Sold merchandise to Cat Company for $7,500 cash (cost is $4,250)
12/11 Sold merchandise on credit to Dog,Inc,Invoice No.852,for $4,000 (cost is $2,200) Terms are 2/10,n/30.


A)  Accounts  Other  Account  Sales  Receivable  Accounts  Date  Credited  Explanation  Cash Dr.  Disc. Dr  Cr.  Sales Cr.  Cr. 12/10SalesCash Sales7,50012/11SalesCredit4,000Sales\begin{array} {|l|l|l|l|c|c|c|c| } \hline & & & & & \text{ Accounts } & & \text{ Other }\\ & \text{ Account } & & & \text{ Sales } & \text{ Receivable } & & \text{ Accounts }\\\text{ Date } & \text{ Credited } & \text{ Explanation } & \text{ Cash Dr. } & \text{ Disc. Dr } & \text{ Cr. } & \text{ Sales Cr. } & \text{ Cr. }\\\hline 12 / 10&\text{Sales}&\text{Cash Sales}&7,500 \\\hline12 / 11 &\text{Sales}&\text{Credit}&&&4,000\\&&\text{Sales}\\\hline\end{array}
B)  Accounts  Other  Account  Sales  Receivable  Accounts  Date  Credited  Explanation  Cash Dr.  Disc. Dr  Cr.  Sales Cr.  Cr. 12/10SalesCash Sales7,5007,50012/11SalesCredit803,920Sales\begin{array} {|l|l|l|l|c|c|c|c| } \hline & & & & & \text{ Accounts } & & \text{ Other }\\ & \text{ Account } & & & \text{ Sales } & \text{ Receivable } & & \text{ Accounts }\\\text{ Date } & \text{ Credited } & \text{ Explanation } & \text{ Cash Dr. } & \text{ Disc. Dr } & \text{ Cr. } & \text{ Sales Cr. } & \text{ Cr. }\\\hline 12 / 10&\text{Sales}&\text{Cash Sales}&7,500&&&7,500 \\\hline12 / 11 &\text{Sales}&\text{Credit}&&80&3,920\\&&\text{Sales}\\\hline\end{array}
C)  Accounts  Other  Account  Sales  Receivable  Accounts  Date  Credited  Explanation  Cash Dr.  Disc. Dr  Cr.  Sales Cr.  Cr. 12/10SalesCash Sales7,5007,50012/11SalesCredit803,9204,000Sales\begin{array} {|l|l|l|l|c|c|c|c| } \hline & & & & & \text{ Accounts } & & \text{ Other }\\ & \text{ Account } & & & \text{ Sales } & \text{ Receivable } & & \text{ Accounts }\\\text{ Date } & \text{ Credited } & \text{ Explanation } & \text{ Cash Dr. } & \text{ Disc. Dr } & \text{ Cr. } & \text{ Sales Cr. } & \text{ Cr. }\\\hline 12 / 10&\text{Sales}&\text{Cash Sales}&7,500&&&&7,500 \\\hline12 / 11 &\text{Sales}&\text{Credit}&&80&3,920&4,000\\&&\text{Sales}\\\hline\end{array}
D)  Accounts  Other  Account  Sales  Receivable  Accounts  Date  Credited  Explanation  Cash Dr.  Disc. Dr  Cr.  Sales Cr.  Cr. 12/10SalesCash Sales7,5007,500\begin{array} {|l|l|l|l|c|c|c|c| } \hline & & & & & \text{ Accounts } & & \text{ Other }\\ & \text{ Account } & & & \text{ Sales } & \text{ Receivable } & & \text{ Accounts }\\\text{ Date } & \text{ Credited } & \text{ Explanation } & \text{ Cash Dr. } & \text{ Disc. Dr } & \text{ Cr. } & \text{ Sales Cr. } & \text{ Cr. }\\\hline 12 / 10&\text{Sales}&\text{Cash Sales}&7,500&&&&7,500 \\\hline\\\hline\end{array}
E)  Accounts  Other  Account  Sales  Receivable  Accounts  Date  Credited  Explanation  Cash Dr.  Disc. Dr  Cr.  Sales Cr.  Cr. 12/10SalesCash Sales7,5007,500\begin{array} {|l|l|l|l|c|c|c|c| } \hline & & & & & \text{ Accounts } & & \text{ Other }\\ & \text{ Account } & & & \text{ Sales } & \text{ Receivable } & & \text{ Accounts }\\\text{ Date } & \text{ Credited } & \text{ Explanation } & \text{ Cash Dr. } & \text{ Disc. Dr } & \text{ Cr. } & \text{ Sales Cr. } & \text{ Cr. }\\\hline 12 / 10&\text{Sales}&\text{Cash Sales}&7,500&&&7,500 \\\hline\\\hline\end{array}

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents