Spencer Co. decides to establish a petty cash fund with a beginning balance of $200. The company decides that any purchase under $25 can be processed through petty cash instead of the voucher system. The journal entry to record establishing the account is:

The acid-test ratio:

The realizable value refers to the expected proceeds from converting an asset into cash.

Cushman Company had $800,000 in sales, sales discounts of $12,000, sales returns and allowances of $18,000, cost of goods sold of $380,000, and $275,000 in operating expenses. Net income equals:

A company had net sales of $545,000 and cost of goods sold of $345,000. Its gross margin equals $890,000.

A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 28, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, The correct journal entry to record the purchase on July 5 is:

A company has sales of $375,000 and its gross profit is $157,500. Its cost of goods sold equals:

Reporting the details of notes is consistent with which accounting principle that requires financial statements (including footnotes) to report all relevant information?

After adjustment, the balance in the Allowance for Doubtful Accounts has the effect of reducing Accounts Receivable to its estimated realizable value.

The quality of receivables refers to the likelihood of collection without loss.