1)

The bank statement that a depositor receives from the bank includes

a. notification of amounts deducted by the bank to cover such things as the cost of a supply of new checks ordered by the depositor.

b. a designation of which checks are still outstanding at the end of the month.

c. a designation of which deposits are in transit at the end of the month.

d. notification of errors made by the depositor in recording checks written during the month in the depositor's accounts.

2)

Which of the following receivables would not be classified as an "other receivable"?

a. Advance to an employee

b. Refundable income tax

c. Notes receivable

d. Interest receivable

3)

An aging of a company's accounts receivable indicates that $7,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,100 credit balance, the adjustment to record bad debts for the period will require a

a. debit to Bad Debts Expense for $7,000.

b. debit to Allowance for Doubtful Accounts for $5,900.

c. debit to Bad Debts Expense for $5,900.

d. credit to Allowance for Doubtful Accounts for $7,000.

4)

Watson Retailers accepted $75,000 of Citibank Visa credit card charges for merchandise sold on July 1. Citibank charges 4% for its credit card use. The entry to record this transaction by Watson Retailers will include a credit to Sales of $75,000 and a debit(s) to

a. Cash $72,000 and Service Charge Expense $3,000.

b. Accounts Receivable $72,000 and Service Charge Expense $3,000.

c. Cash $72,000 and Interest Expense $3,000.

d. Accounts Receivable $75,000.