Entry to record sale of merchandise on account includes

Assignment Help Financial Accounting

Reference no: EM131292017

1. Services provided for cash are recorded in the revenue journal.

True

False

2. A control account is used to record the details of the individual subsidiary accounts.

True

False

3. The subsidiary ledger that includes customer account activity is called the

a) expense ledger

b) accounts receivable ledger

c) accounts payable ledger

d) asset ledger

4. The primary difference between a periodic and perpetual inventory system is that a

a) periodic system provides an easy means to determine inventory shrinkage

b) periodic system determines the inventory on hand only at the end of the accounting period

c) periodic system records the cost of the sale on the date the sale is made

d) periodic system keeps a record showing the inventory on hand at all times

5. Using a perpetual inventory system, the entry to record the sale of merchandise on account includes a

a) debit to Merchandise Inventory

b) debit to Sales

c) credit to Accounts Receivable

d) credit to Merchandise Inventory

Reference no: EM131292017

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