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 net method of accounting for sales. On March 15, Babson returns some of the merchandise, which is not defective. The selling price of the returned merchandise is $600 and the cost of the merchandise returned is $350. The entry(ies) that Klein must make on March 15 is (are):

The Cash Over and Short account:

Purchase allowances refer to a price reduction (allowance) granted to a buyer of defective or unacceptable merchandise.

Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on May 31, its Cash account shows a debit balance of $17,025. Clayborn’s May bank statement shows $15,800 on deposit in the bank. Determine the adjusted cash balance using the following information:       Deposit in transit $ 5,200 Outstanding checks $ 4,600 Bank service fees, not yet recorded by company $ 25 A NSF check from a customer, not yet recorded by the company $ 600 The adjusted cash balance should be:

Proper internal control would require that a department manager inform the purchasing department of its needs for additional merchandise by preparing and signing a purchase requisition which lists the merchandise needed and requests that it be purchased.

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.)