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The net method initially records the invoice at its net amount (net of any cash discount).

The Merchandise Inventory account balance at the beginning of the current period is equal to the amount of ending Merchandise Inventory from the previous period.

A debit balance in the Cash Over and Short account reflects an expense and is reported on the income statement as part of selling, general and administrative expenses.

Childers Company, which uses a perpetual inventory system, has an established petty cash fund in the amount of $400. The fund was last reimbursed on November 30. At the end of December, the fund contained the following petty cash receipts:         December 4 Freight charge for merchandise purchased $ 62 December 7 Delivery charge for shipping to customer $ 46 December 12 Purchase of office supplies $ 30 December 18 Donation to charitable organization $ 51 If, in addition to these receipts, the petty cash fund contains $201 of cash, the journal entry to reimburse the fund on December 31 will include:

A company borrowed $16,000 by signing a 4-month promissory note at 12%. The amount of interest to be paid at maturity is $640.

Which internal control principle prescribes the use of pre-numbered printed checks?

Internal control systems are subject to limitations that usually arise from either (1) human error or human fraud, or (2) the cost-benefit principle.

The expense recognition (matching) principle requires that accrued interest on outstanding notes receivable be recorded at the end of each accounting period. rev: 10_27_2017_QC_CS-107064

The accounts receivable turnover indicates how often accounts receivable are received and collected during the period.

Winkler Company borrows $85,000 and pledges its receivables as security. The journal entry to record this transaction would be: