Quick assets include cash and cash equivalents, inventory, and current receivables.

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. The amount of the cash paid on July 28 equals:

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. Babson pays the invoice on March 17, and takes the appropriate discount. The journal entry that Klein makes on March 17 is:

A voucher system is a set of procedures and approvals designed to control cash disbursements and the acceptance of obligations.

The gross margin ratio:

Allowance for Doubtful Accounts is a contra asset; its balance is added to Accounts receivable.

The impact of technology on internal controls includes:

When preparing an unadjusted trial balance using a periodic inventory system, the amount shown for Merchandise Inventory is:

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. The amount of the cash paid on July 28 equals:

The period of a note is the time from the note’s (contract) date to its maturity date.