Hugh Snow returned merchandise to Farley Co. The entry on the books of Farley company to record

In a firm that uses special journals, the sale of merchandise for cash is recorded in the

cash receipts journal.

An example of a merchandising company is a

bookstore

Hugh Snow returned merchandise to Farley Co. The entry on the books of Farley company to record the return of merchandise from Hugh Snow would include a:

Debit Sales Returns and Allowances

After all postings have been made, the totals of the balances in the accounts receivable subsidiary ledger should equal the balance of the Accounts Receivable account in the general ledger.

True

Kay Sadia sold merchandise for $8,750 subject to a 6% sales tax. The entry in the sales journal will include a debit to Accounts Receivable for

$9,275.00.

In a firm that uses special journals, the acceptance of a return of merchandise from a credit customer is recorded in the

general journal.