Assume that the custodian of a $450 petty cash fund has $62 in coins and currency plus $383 in receipts at the end of the month. The entry to replenish the petty cash fund will include:

A company’s gross profit was $83,750 and its net sales were $347,800. Its gross margin ratio equals:

Electronic funds transfers (EFTs) are decreasingly used by companies due to the inconvenience and high cost.

If a credit card sale is made, the seller debits Cash and credits Sales for the same amount.

An income statement that includes cost of goods sold as another expense and shows only one subtotal for total expenses is a:

Deposits in transit are deposits made and recorded by the depositor but not yet recorded on the bank statement.

Assume that the custodian of a $450 petty cash fund has $62 in coins and currency plus $383 in receipts at the end of the month. The entry to replenish the petty cash fund will include:

If goods are shipped FOB destination, the seller does not record revenue from the sale until the goods arrive at their destination because the transaction is not complete until that point.

A company has $90,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 4% of outstanding receivables are uncollectible. The current balance (before adjustments) in the allowance for doubtful accounts is an $800 debit. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for:

If a credit card sale is made, the seller debits Cash and credits Sales for the same amount.