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Which of the following events would cause a bank to debit a depositor’s account?

Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on May 31, its Cash account shows a debit balance of $17,025. Clayborn’s May bank statement shows $15,800 on deposit in the bank. Determine the adjusted cash balance using the following information:       Deposit in transit $ 5,200 Outstanding checks $ 4,600 Bank service fees, not yet recorded by company $ 25 A NSF check from a customer, not yet recorded by the company $ 600 The adjusted cash balance should be:

Proper internal control would require that a department manager inform the purchasing department of its needs for additional merchandise by preparing and signing a purchase requisition which lists the merchandise needed and requests that it be purchased.

The materiality constraint, as applied to bad debts:

Purchase allowances refer to a price reduction (allowance) granted to a buyer of defective or unacceptable merchandise.

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

The gross margin ratio is defined as gross margin divided by net sales.

A voucher system establishes procedures for verifying, approving, and recording obligations for eventual cash disbursement.

A credit memorandum on a bank statement indicates:

FOB shipping point means that the buyer accepts ownership when the goods arrive at the buyer’s place of business.