Author: Anonymous

Net sales equals:

The account which records differences between amounts of cash deposited and amounts from the cash register tapes is called

The amount of cash in the cash register from sales totals $534.  The amount for sales recorded on the cash register tape was $530.  Which journal entry is required?

Dance Town AcademyThe items listed below were identified while preparing a bank reconciliation for the company’s checking account as of March 31. Cash balance according to the general ledger ? Bank statement balance $18,500 Outstanding checks 2,700 Customer’s bounced check 350 Bank service charges 100 Deposits in transit 1,000 Interest earned on the checking account 60 Refer to Dance Town Academy. How will the deposits in transit be handled on a bank reconciliation?

If a company erroneously records a $500 deposit as $50 in its records, which of the following must occur in a bank reconciliation to correct the error?

A-One ConstructionThe following data are from the company’s records for the year ended December 31: Accounts Receivable–January 1 $455,000 Credit sales during the year 900,000 Collections from credit customers during the year 825,000 Allowance for Doubtful Accounts        (Before adjustment at December 31) 2,100 Estimated uncollected accounts based on an aging analysis 29,200   Refer to A-One Construction. If the aging approach is used to estimate bad debts, what amount should be recorded as bad debt expense?

If shipping terms are F.O.B. shipping point, it means that:

Cost of goods (or merchandise) available for sale minus ending inventory is referred to as:

Which of the following statements is not true regarding the allowance method?

On June 10, Lawson Company sold merchandise on account for $1,000, credit terms 2/10, n/30, that cost $650. The company uses the net method to record sales.  What effect would this transaction have on the accounting equation?  Assume Lawson uses a perpetual inventory system.