that best completes the statement or answers the question. 1) Regarding the gros

Question

that best completes the statement or answers the question. 1) Regarding the gross method of handling credit and debit card transactions, which of the following 1) A) The journal entry on the date of sale is identical to a journal entry made for a sale on account. processing fees for all transactions processed for the month are deducted from the statements is correct? B) On the date of sale, the Sales Revenue account is credited for the amount of sale less the company's bank account, often on the last day of the month. DJ Thetotal sale amount is deposted on tle 2) Which of the following is the last step in the daily control over cash receipts by mail? 2) A) A mailroom employee sends all customer checks to the treasurer who has the cashier make the bank deposit. B) The controller compares the records of the day's bank deposit amount from the treasurer and the debit to Cash from the accounting department. C The accounting department prepares journal entries to cash and the customers'accounts. D) The controller opens the mail and sends the remittance advices to the accounting department. 3) 3) Use the following to calculate the acid- test ratio. (Round your answer to two decimal places) Cash Short- term investments Net current receivables Inventory $130,000 15,000 280,000 280,000 790,000 B) 0.73 0.89 D) 8.67 A) 0.54 SAY. Write your answer in the space provided or on a separate sheet of paper. 4) On January 1, Cooper Corp. accepted a one-year note for S5000 at 4% from one of its customers, when the note matured on December 31, the customer was unable to pay, and the company treated it as a dishonored note. Prepare the journal entry that Cooper will make to record the dishonored note. Omit explanation.

Explanation / Answer

Ans 1: option B

Reason: all the transaction are to be recorded as and when incurred, so sales revenue are also need to be recorded net of fees when the amount of processing fee is certainable.

Ans 2: Option C

Reason: The last step is too record transaction in books so the financial present a true and fair view.

Ans 3: Option A

Solu: Acid Ratio = (Cash + Accounts Receivable + Short-term Investments) / Current Liabilities

                        =0.54

Ans 4: Accounts Receivable              Dr     5200

              To Notes Receivable                               5000

              To Interest Receivable                                200

(being notes receivable are being dishonouredd)

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