Reference no: EM132557490

Questions -

Q1) Singh Company received payment in full within the credit period for goods sold for $400 plus 13% HST. Terms of the sale were n/30. Which entry records this transaction?

A) Debit Accounts Receivable $420, credit Sales, $420

B) Debit Cash, $452, credit Sales, $452

C) Debit Cash, $400, credit Accounts Receivable, $400

D) Debit Cash, $452, credit Accounts Receivable, $452

Q2) Singh Company received payment in full within the discount period for goods sold for $400 plus 13% HST. Terms of the sale were 2/10, n/30. Which entry records this transaction?

A) Debit Cash, $442.96, debit Sales Discounts $9.04, credit Accounts Receivable, $452

B) Debit Cash, $444, debit Sales Discounts $8, credit Accounts Receivable, $452

C) Debit Cash, $444, credit Accounts Receivable, $444

D) Debit Cash, $452, credit Accounts Receivable, $452

Q3) Cynthia's Crystals sold $1,000 worth of crystal plus 5% GST and 8% PST to a charge customer with terms 2/10, n/30. The invoice was paid within terms. The entry to record receipt of payment is

A) Debit cash $1,130, credit Accounts Receivable $1,130.

B) Debit cash $1,297.60, debit Cash discounts $22.40, credit Accounts Receivable $1,120.

C) Debit Cash $1,110, debit Cash Discounts $20, credit Accounts Receivable $1,130.

D) Debit Cash $1,080, debit Cash Discounts $20, credit Accounts Receivable $1,000, credit GST Payable $50, credit PST Payable $80.

Q4) Molly's Craft Shop sold goods for $450 plus PST at 5% to a charge customer. The customer returned $100 worth of goods for credit. Terms of the sale were 2/10, n/30. If the customer pays the amount within the discount period, what amount should the customer pay?

A) $360.50

B) $345.00

C) $350.00

D) $372.50