All of the following are considered effective cash management principles except:

When a petty cash fund is in use:

The expense recognition (matching) principle, as applied to bad debts, requires:

Giorgio Italian Market bought $4,000 worth of merchandise from Food Suppliers and signed a 90-day, 6% promissory note for the $4,000. Food Supplier’s journal entry to record the collection on the maturity date is: (Use 360 days a year.)

Valley Spa purchased $7,800 in plumbing components from Tubman Co. Valley Spa Studios signed a 60-day, 10% promissory note for $7,800. If the note is dishonored, what is the amount due on the note? (Use 360 days a year.)

A company purchases merchandise with a catalog price of $20,000. The company receives a 35% trade discount from the seller. The seller also offers credit terms of 2/10, n/30. Assuming no returns were made and that payment was made within the discount period, what is the net cost of the merchandise?

A company’s current assets are $23,420, its quick assets are $13,890 and its current liabilities are $12,220. Its acid-test ratio equals:

The advantage of the allowance method of accounting for bad debts is that it identifies the specific customers who will not pay their bills.

An invoice is an itemized statement of goods prepared by the customer listing the customer’s name, items sold, sales prices, and terms of sale.

A company using the percentage of sales method for estimating bad debts has sales of $350,000 and estimates that 1.0% of its sales are uncollectible. The unadjusted balance in Allowance for Doubtful Accounts is a $300 credit. The estimated amount of bad debts expense is $3,200