Question

9. What is the journal entry to record the sale of $2,000 of merchandise

on account?

A. Dr. Accounts Receivable 2,000 Cr. Sales Revenue 2,000

B. Dr. Sales Revenue 1,900 Cr. Accounts Receivable 1,900

C. Dr. Accounts Payable 1,900 Cr. Sales Revenue 1,900

D. Dr. Cash 2,000 Cr. Sales Revenue 2,000

E. None of the above

10. Using the periodic method, what is the journal entry to record the purchase of $2,000 of merchandise inventory on credit, account?

A. Dr. Purchases 2,000 Cr. Cash 2,000

B. Dr. Cash 2,000 Cr. Purchases 2,000

C. Dr. Purchases 2,000 Cr. Accounts Payable 2,000

D. Dr. Merchandise Inventory 2,000 Cr. Accounts Receivable 2,000

E. None of the above

11. In which journal is the cash purchase of merchandise inventory recorded?

A. Cash Receipts

B. Cash Payments

C. Purchases

D. Sales

E. None of the above

12. In which journal is the closing entry to close out the expense accounts recorded?

A. Cash Receipts

B. Cash Payments

C. Purchases

D. Sales

E. None of the above

Answer 1

Answer-9: (A) Dr. Accounts Receivable 2,000 Cr. Sales Revenue 2,000

Explanation: Journal Entry to record the sale of $2,000 merchandise on account will be:

Accounts Receivable Sales Revenue

2,000

2,000

on credit sale of merchandise there will be increase in Accounts Receivable and Increase in Sales Revenue so Accounts Receivable will be Debited and Sales Revenue will be Credited.

so the Correct option is (A) Dr. Accounts Receivable 2,000 Cr. Sales Revenue 2,000

Answer- 10: (c) Dr. Purchases 2,000 Cr. Accounts Payable 2,000

Explanation: Under Periodic Method the journal entry to record Purchase of $2,000 of Merchandise Inventory on credit,on account will be:

Purchases Accounts Payable

2,000

2,000

on credit purchase of merchandise there will be an increase of $2,000 in Accounts Payable and an Increase of $2,000 in Purchases, so Purchases will be Debited and Accounts Payable will be Credited.

so the correct option is (C) Dr. Purchases 2,000 Cr. Accounts Payable 2,000

Answer-11: (B) Cash Payments Journal

Explanation: All transactions related to Cash Purchase of Merchandise will be recorded in the Cash Payments Journal. so the correct option is (B) Cash Payment Journal

Answer -12: (E) None of the Above

Explanation: All Closing entries, Adjustment Enrtries or any other Entry which is not covered in the Purchase Journal, Sales Journal , Cash Receipts Journal and Cash Payments Journal, will be recorded in General Journal.

so Closing Entry to close out the Expenses accounts will be recorded in General Journal

so the correct option is (E) None of the Above.