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Outstanding checks are checks a company has written and recorded as cash disbursements that have not yet been presented to the bank for payment.

The direct write-off method of accounting for doubtful accounts follows the accrual concept of accounting more closely than does the allowance method of accounting for doubtful accounts.

The higher the accounts receivable turnover is, the faster receivables are being collected. 

Journal entries are required for all adjustments to the “cash balance per bank statement” in a bank reconciliation,

In a perpetual inventory system, two entries usually are made to record each sales transaction. The purposes of these entries are best described as follows: 

A 3-month note dated July 1 has a maturity date of October 1. 

Which of the following statements regarding cost flows is true?

The credit term 1/10, n/30 means: 

At the end of an accounting period, the “cash balance per bank statement” on that date is usually the proper cash amount to show on the balance sheet.

The Luann Company uses the periodic inventory system. The following May data are for an item in Luann’s inventory:  Quantity Unit Cost  Total Costs Beginning balance, May 1 10 $8 $80 Purchased  70  $10 $700 Sold 50 Purchased 25 $12 $300   Calculate the Cost of Goods Sold for May and Ending Inventory at May 31 using the last-in, first-out (LIFO).