Question : 131. The following information available to reconcile Sleepy Time Bedding’s book : 1256892

 

 

131. The following information is available to reconcile Sleepy Time Bedding’s book balance of cash with its bank statement cash balance as of July 31:

 

a.

On July 31, the company’s Cash account has a $25,862 debit balance, but its July bank statement shows a $28,177 cash balance.

b.

Check No. 1531 for $1,520 and Check No. 1540 for $752 were outstanding on the June 30 bank reconciliation. Check No. 1540 is listed with the July canceled checks, but Check No. 1531 is not. Also, Check No. 1565 for $536 and Check No. 1569 for $2,288, both written in July, are not among the canceled checks on the July 31 statement.

c.

In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that Check No. 1556 for July rent was correctly written and drawn for $1,240 but was erroneously entered in the accounting records as $1,230.

d.

A credit memorandum enclosed with the July bank statement indicates the bank collected $9,500 cash on a noninterest-bearing note for Sleepy Time Bedding, deducted a $48 collection fee, and credited the remainder to its account. Sleepy Time Bedding had not recorded this event before receiving the statement.

e.

A debit memorandum for $805 lists a $795 NSF check plus a $10 NSF charge. The check had been received from a customer, Evan Shaw. Sleepy Time Bedding has not yet recorded this check as NSF.

f.

Enclosed with the July statement is a $14 debit memorandum for bank services. It has not yet been recorded because no previous notification had been received.

g.

Sleepy Time Bedding July 31 daily cash receipts of $10,652 were placed in the bank’s night depository on that date but do not appear on the July 31 bank statement.

 

What is the appropriate journal entry to record the collection made by the bank?

A. Debit to cash $9,500 credit to accounts receivable $9,500.

B. Credit to accounts receivable $9,500 credit to cash $9,500.

C. Debit to cash $9,452 debit to collection expense $48 credit accounts receivable $9,500.

D. Debit to cash $9,452 debit to collection expense $48 credit notes receivable $9,500.

E. No adjusting entry is necessary.

 

132. What is the net method of recording purchases?

A. A purchase is originally recorded at its full amount with any cash discount taken recorded as a reduction to inventory at a later date.

B. A purchase is originally recorded at its full amount less any available cash discount.

C. A purchase is originally recorded at its full amount plus any available cash discount.

D. A purchase is originally recorded at its full amount with any cash discount taken recorded as an increase to inventory at a later date.

E. A purchase is originally recorded to a purchase discounts lost account with any cash discount taken recorded as a reduction to inventory at a later date.

 

 

 

 

 

133. The Discounts Lost account:

A. Is used with the gross method of recording purchases to highlight the value of purchase discounts taken.

B. Is used with the gross method of recording purchases to highlight the value of purchase discounts available but not taken.

C. Is used to note situations where the accounting department has lost or misplaced paperwork relating to inventory purchases.

D. Is used with the net method of recording purchases to highlight the value of purchase discounts taken.

E. Is used with the net method of recording purchases to highlight the value of purchase discounts available but not taken.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

134. A company purchases merchandise on November 2 at a $2,400 invoice price (terms 3/10, n/30) and then pays all amounts owed on November 12. Using perpetual inventory and net purchases methods, what are the proper entries to record these two transactions?

 

A.

Nov. 2

Merchandise Inventory

2,400

 

 

Accounts Payable

 

2,400

 

nventoryDiscounts Lostecord these two transactions.thod, what are the proper entries to record the pury purchases11111111111111

Nov. 11

Accounts Payable

2,400

 

 

Cash

 

2,400

 

B.

Nov. 2

Merchandise Inventory

2,328

 

 

Accounts Payable

 

2,328

 

Nov. 11

Accounts Payable

2,328

 

 

Cash

 

2,328

 

C.

Nov. 2

Merchandise Inventory

2,328

 

 

Accounts Payable

 

2,328

 

Nov. 11

Accounts Payable

2,328

 

 

Purchase Discounts Lost

72

 

 

Cash

 

2,400

 

D.

Nov. 2

Merchandise Inventory

2,328

 

 

Accounts Payable

 

2,328

 

Nov. 11

Accounts Payable

2,328

 

 

Inventory

72

 

 

Cash

 

2,400

 

 

E.

Nov. 2

Merchandise Inventory

2,328

 

 

Accounts Payable

 

2,328

 

Nov. 11

Accounts Payable

2,328

 

 

Purchase Discounts Lost

72

 

 

Cash

 

2,400

 

 

135. A company purchases merchandise on November 2 at a $2,400 invoice price (terms 3/10, n/30) and then pays all amounts owed on December 2. Using perpetual inventory and net purchases methods, what are the proper entries to record these two transactions?

 

A.

Nov. 2

Merchandise Inventory

2,400

 

 

Accounts Payable

 

2,400

 

nventoryDiscounts Lostecord these two transactions.thod, what are the proper entries to record the pury purchases11111111111111

Dec. 2

Accounts Payable

2,400

 

 

Cash

 

2,400

 

B.

Nov. 2

Merchandise Inventory

2,328

 

 

Accounts Payable

 

2,328

 

Dec. 2

Accounts Payable

2,328

 

 

Cash

 

2,328

 

 

C.

Nov. 2

Merchandise Inventory

2,328

 

 

Accounts Payable

 

2,328

 

Dec. 2

Accounts Payable

2,328

 

 

Purchase Discounts Lost

72

 

 

Cash

 

2,400

 

D.

Nov. 2

Merchandise Inventory

2,328

 

 

Accounts Payable

 

2,328

 

Dec. 2

Accounts Payable

2,328

 

 

Inventory

72

 

 

Cash

 

2,400

 

E.

Nov. 2

Merchandise Inventory

2,328

 

 

Accounts Payable

 

2,328

 

Dec. 2

Accounts Payable

2,328

 

 

Purchase Discounts Lost

72

 

 

Cash

 

2,400

 

 

 

 

 

 

 

136. A company purchases merchandise on November 2 at a $2,400 invoice price (terms 3/10, n/30) and then pays all amounts owed on November 12. Using periodic inventory and net purchases methods, what are the proper entries to record these two transactions?

 

A.

Nov. 2

Merchandise Inventory

2,400

 

 

Accounts Payable

 

2,400

 

nventoryDiscounts Lostecord these two transactions.thod, what are the proper entries to record the pury purchases11111111111111

Nov. 11

Accounts Payable

2,400

 

 

Cash

 

2,400

 

B.

Nov. 2

Purchases

2,328

 

 

Accounts Payable

 

2,328

 

Nov. 11

Accounts Payable

2,328

 

 

Cash

 

2,328

 

C.

Nov. 2

Purchases

2,328

 

 

Accounts Payable

 

2,328

 

Nov. 11

Accounts Payable

2,328

 

 

Purchase Discounts Lost

72

 

 

Cash

 

2,400

 

D.

Nov. 2

Merchandise Inventory

2,328

 

 

Accounts Payable

 

2,328

 

Nov. 11

Accounts Payable

2,328

 

 

Inventory

72

 

 

Cash

 

2,400

 

 

E.

Nov. 2

Purchases

2,328

 

 

Accounts Payable

 

2,328

 

Nov. 11

Accounts Payable

2,328

 

 

Purchase Discounts Lost

72

 

 

Cash

 

2,400

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

137. A company purchases merchandise on November 2 at a $2,400 invoice price (terms 3/10, n/30) and then pays all amounts owed on December 2. Using periodic inventory and net purchases methods, what are the proper entries to record these two transactions?

 

A.

Nov. 2

Merchandise Inventory

2,400

 

 

Accounts Payable

 

2,400

 

nventoryDiscounts Lostecord these two transactions.thod, what are the proper entries to record the pury purchases11111111111111

Dec. 2

Accounts Payable

2,400

 

 

Cash

 

2,400

 

B.

Nov. 2

Purchases

2,328

 

 

Accounts Payable

 

2,328

 

Dec. 2

Accounts Payable

2,328

 

 

Cash

 

2,328

 

 

C.

Nov. 2

Merchandise Inventory

2,328

 

 

Accounts Payable

 

2,328

 

Dec. 2

Accounts Payable

2,328

 

 

Purchase Discounts Lost

72

 

 

Cash

 

2,400

 

D.

Nov. 2

Merchandise Inventory

2,328

 

 

Accounts Payable

 

2,328

 

Dec. 2

Accounts Payable

2,328

 

 

Inventory

72

 

 

Cash

 

2,400

 

E.

Nov. 2

Purchases

2,328

 

 

Accounts Payable

 

2,328

 

Dec. 2

Accounts Payable

2,328

 

 

Purchase Discounts Lost

72

 

 

Cash

 

2,400

 

 

 

 

 

 

 

 

 

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more