Author: Anonymous

Franklin Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on August 31, its Cash account shows a debit balance of $13,162. Franklin’s August bank statement shows $14,237 on deposit in the bank. Determine the adjusted cash balance using the following information:       Deposit in transit $ 4,500 Outstanding checks $ 3,900 Bank service fees, not yet recorded by company $ 50 The bank collected on a note receivable, not yet recorded by the company $ 1,725 The adjusted cash balance should be:

When using the allowance method of accounting for uncollectible accounts, the entry to write off Jeannie’s uncollectible account is a debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable—Jeannie.

A company factored $30,000 of its accounts receivable and was charged a 2% factoring fee. The journal entry to record this transaction would include a debit to Cash of $30,000, a debit to Factoring Fee Expense of $600, and credit to Accounts Receivable of $30,600.

A debit memorandum is:

Collusion is a form of fraud where individuals collaborate to thwart separation of duties.

 Norma the bookkeeper is    

Jervis accepts all major bank credit cards, including those issued by Northern Bank (NB), which assesses a 3% charge on sales for using its card. On June 28, Jervis had $3,500 in NB Card credit sales. What entry should Jervis make on June 28 to record the deposit?

A voucher system’s control over cash disbursements begins when a company incurs an obligation that will result in eventual payment of cash.

When using the allowance method of accounting for uncollectible accounts, the entry to write off Jeannie’s uncollectible account is a debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable—Jeannie.

Clayborn Company’ bank reconciliation as of May 31 is shown below.           Bank balance $ 15,800 Book balance $ 17,025 + Deposit in transit   5,200 Bank service fees   -25 – Outstanding checks   -4,600 NSF returned   -600 Adjusted bank balance $ 16,400 Adjusted book balance $ 16,400 One of the adjusting journal entries that Clayborn must record as a result of the bank reconciliation includes: