Exam 9: Cash Receipts, Cash Payments, and Banking Procedures

Phones R Us uses a perpetual inventory system when recording its cash payments and cash receipts.In June,the business purchases $5,000 of goods on account with terms of 2/10,n/30.Select the correct entry to record the payment of the goods within the discount period.

Which of the following statements is not correct?

Record the following transactions for the month of November 2016 on page 8 of a cash receipts journal.Total,prove,and rule the cash receipts journal as of November 30.

Which of the following would not be shown as an adjustment to the book balance on a bank reconciliation statement?

Of the four categories shown in the form above,which category or categories require journal entries in the firm's records?

The cash receipts journal for Engels Company is shown below.Describe how the amounts would be posted to the accounts receivable subsidiary ledger accounts.

To arrive at an accurate balance on a bank reconciliation statement,outstanding checks should be

Included with its bank statement a firm may receive a credit memorandum,which could indicate

In a firm that has a good system of internal control,cash receipts are deposited often.

Which of the following statements is correct?

To arrive at an accurate balance on a bank reconciliation statement,deposits in transit should be

Read each of the following transactions.Determine the accounts to be debited and credited. A)Purchased merchandise for $950 in cash. B)Issued a check for $752 to remit sales tax to the state sales tax authority. C)Issued a check for $1,894 to purchase supplies.

The process of determining why a difference exists between a firm's records and the bank's records and bringing the two sets of records into balance is known as ____________________ the bank statement.

The cash receipts journal for Carlson Company is shown below.Describe how the amounts would be posted to the accounts receivable subsidiary ledger accounts.

Valerie's Market uses a perpetual inventory system when recording its cash payments and cash receipts.The business sells $6,000 of goods to a charge account customer with terms of 1/10,n/30.If the customer pays within the discount period,the entry to record the receipt of cash from the customer would include:

Read each of the following transactions.Determine the accounts to be debited and credited. A)Sold merchandise for $200 in cash plus sales tax of $14. B)Collected $3,400 from credit customers on account. C)Sold merchandise for $1,600 in cash plus sales tax of $112.There was a cash shortage of $6.

Indicate in which section of the Bank Reconciliation Statement the following reconciling items would appear. A check written by Bosley Co.for $168 was mistakenly recorded in the company records as $186.

Indicate in which section of the Bank Reconciliation Statement the following reconciling items would appear. An NSF check from a customer.

Record the following transactions for the month of June 2016 on page 6 of a cash payments journal.Total,prove,and rule the cash payments journal as of June 30.

A check issued for $890 to pay a vendor on account was recorded in the firm's records as $980;the canceled check was properly listed on the bank statement at $890.To arrive at an accurate balance on a bank reconciliation statement,the error should be