Author: Anonymous

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.

A check involves 3 parties: a maker who signs the check, a payee who is the recipient, and a bank on which the check is drawn.

The percent of sales method for estimating bad debts uses only income statement account balances to estimate bad debts.

Cash equivalents:

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

A company borrowed $10,000 by signing a 180-day promissory note at 9%. The maturity value of the note is: (Use 360 days a year.)

Purchase discounts are the same as trade discounts.