Credit memos from the bank Select one: a. decrease a bank customer's account b. are used to show a bank service charge c. show that a company has deposited a customer's NSF check d. show that the bank has collected a note receivable for the customer

Credit memos from the bank Select one: a. decrease a bank customer's account b. are used to show a bank service charge c. show that a company has deposited a customer's NSF check d. show that the bank has collected a note receivable for the customer

Quickbooks Online Accounting

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

Chapter4: Operating Activities: Sales And Cash Receipts

Section: Chapter Questions

Problem 3.7C

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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

22.) Credit memos from the bank

Select one:

a. decrease a bank customer's account

b. are used to show a bank service charge

c. show that a company has deposited a customer's NSF check

d. show that the bank has collected a note receivable for the customer

23.) If merchandise sells for $3,500 on account, with terms of 3/15, n/45, and the cost of the inventory sold is $2,100, the journal entry for the receipt of the customer’s payment on account within the discount period under the gross method would include

Select one:

a. a credit to Cash for $3,395

b. a credit to Accounts Receivable for $3,395

c. a debit to Sales of $105

d. a credit to Sales Discounts for $105

26.) The direct write-off method of accounting for uncollectible accounts

Select one:

a. emphasizes balance sheet relationships

b. is often used by small companies and companies with few receivables

c. emphasizes cash realizable value

d. emphasizes the matching of expenses with revenues

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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