A company purchased $10,000 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point. The freight charge, $500, was added to the invoice amount. On June 20, it returned $800 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it is entitled to. The cash paid on June 24 equals:

A method of estimating bad debts expense that involves a detailed examination of outstanding accounts and the length of time past due is the:

On October 12 of the current year, a company determined that a customer’s account receivable was uncollectible and that the account should be written off. Assuming the allowance method is used to account for bad debts, what effect will this write-off have on the company’s net income and total assets?

On July 9, Mifflin Company receives an $8,500, 90-day, 8% note from customer Payton Summers as payment on account. Compute the amount due at maturity for the note. (Use 360 days a year.)

The itemized statement of goods prepared by a vendor listing the customer’s name, items sold, sales prices, and terms of the sale is called the:

The entry to increase the balance in petty cash from $50 to $75 would include a credit to Petty Cash of $25.

On a bank statement, deposits are listed as credits because the bank increases its liability to the depositor when the deposit is made.

A set of procedures and approvals for verifying, approving, and recording obligations for eventual cash disbursement, and for issuing checks for payment only of verified, approved, and recorded obligations is referred to as a(n):

Valley Spa purchased $7,800 in plumbing components from Tubman Co. Valley Spa signed a 60-day, 10% promissory note for $7,800. If the note is dishonored, but Tubman intends to continue collection efforts, what is the journal entry to record the dishonored note? (Use 360 days a year.)

Merchandise inventory is reported in the long-term assets section of the balance sheet.