A voucher system establishes procedures for verifying, approving, and recording obligations for eventual cash disbursement.

A credit memorandum on a bank statement indicates:

A company wants to decrease its $200 petty cash fund to $175. The entry to reduce the fund is:

FOB shipping point means that the buyer accepts ownership when the goods arrive at the buyer’s place of business.

Jasper makes a $25,000, 90-day, 7% cash loan to Clayborn Co. The amount of interest that Jasper will collect on the loan is: (Use 360 days a year.)

A maker who dishonors a note is one who does not pay it at maturity.

The profit margin ratio is the same as the gross profit ratio.

A voucher system establishes procedures for verifying, approving, and recording obligations for eventual cash disbursement.

On March 12, Klein Company sold merchandise in the amount of $7,800 to Babson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Klein uses the perpetual inventory system and the gross method of accounting for sales. The journal entry or entries that Klein will make on March 12 is:

All of the following are true of the number of days’ sales uncollected ratio except: