Author: Anonymous

The number of days’ sales uncollected is used to:

A maker who dishonors a note is one who does not pay it at maturity.

The profit margin ratio is the same as the gross profit ratio.

A credit memorandum on a bank statement indicates:

Brinker accepts all major bank credit cards, including First Savings Bank’s, which assesses a 2.5% charge on sales for using its card. On May 26, Brinker had $4,800 in First Savings Bank Card credit sales. What entry should Brinker make on May 26 to record the deposit?

On September 12, Vander Company sold merchandise in the amount of $5,800 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Jepson uses the periodic inventory system and the gross method of accounting for purchases. Jepson pays the invoice on September 18, and takes the appropriate discount. The journal entry that Jepson makes on September 18 is:

All of the following are true of the number of days’ sales uncollected ratio except:

The following statements regarding gross profit are true except:

Merchandise inventory refers to products that a company owns and intends to sell to customers.

Easton Co. deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on June 30, its Cash account shows a debit balance of $60,209. Easton’s June bank statement shows $58,349 on deposit in the bank. Determine the adjusted cash balance using the following information:       Deposit in transit $ 3,800 Outstanding checks $ 1,925 Check printing fee, not yet recorded by company $ 15 Interest earned on account, not yet recorded by the company $ 30 The adjusted cash balance should be: