AAMI ACCOUNTING 2 STUDY EXAMS GUIDE QUESTIONS AND ANSWERS SURE A.pdf

AAMI ACCOUNTING 2 STUDY EXAMS GUIDE
QUESTIONS AND ANSWERS SURE A+
✔✔Journal Entry: Returned purchased goods to sell that were originally bought for cash
- ✔✔Debit:

Cash
Purchase discount

Credit:

purchase returns and allowances

✔✔A form used to record details of a sale and a bill to the customer - ✔✔Invoice

✔✔What account does a company debit when it buys goods that it plans to sell to its
customers - ✔✔Merchandise purchases

✔✔Journal Entry: Company bought goods to sell for cash - ✔✔Debit:

Merchandise purchases

Credit:

Cash

✔✔a 2% discount if invoice is paid within 10 days, net due in 30 days - ✔✔2/10, n/30

✔✔What concept is key to small business operations - ✔✔Cash Flow

✔✔Journal Entry: Simple sale of goods for cash - ✔✔Debit:

, Cash

Credit:

Sales

✔✔Journal Entry: Sold good on account w/ terms 2/10, n/30 - ✔✔Debit:

Accounts receivable

Credit:

Sales

✔✔Journal Entry: Customer takes advantage of discount - ✔✔Debit:

Sales discount
Cash

Credit:

Accounts receivable

✔✔Journal Entry: Sold goods on account, not received payment yet and customer
returns goods because they over ordered - ✔✔Debit:

Sales returns and allowances

Credit:

Accounts receivable

✔✔Journal Entry: Sold goods for cash and have a sales tax on those items - ✔✔Debit:

Cash

Credit:

Sales
Sales tax payable

✔✔Journal Entry: What we pay the government - ✔✔Debit:

Sales tax payable

Credit: