Category: Uncategorized

The quality of receivables refers to the likelihood of collection without loss.

Cushman Company had $800,000 in sales, sales discounts of $12,000, sales returns and allowances of $18,000, cost of goods sold of $380,000, and $275,000 in operating expenses. Net income equals:

Petty cash reimbursement requires a journal entry that involves a debit to the appropriate expenses and a credit to Cash.

A high accounts receivable turnover in comparison with competitors suggests that the firm should tighten its credit policy.

Credit sales are recorded by crediting Accounts Receivable.

Reporting the details of notes is consistent with which accounting principle that requires financial statements (including footnotes) to report all relevant information?

Juniper Company uses a perpetual inventory system and the gross method of accounting for purchases. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 16, it paid the full amount due. The amount of the cash paid on August 16 equals:

Petty cash reimbursement requires a journal entry that involves a debit to the appropriate expenses and a credit to Cash.

Basic bank services do not include:

Canceled checks are checks the bank has paid and deducted from the customer’s account during the period.