1. The Tanner Companys April 30, 2016 pre-reconciliation cash balance on its books was $37,000. While preparing the April 30 bank reconciliation, Tanner determined that outstanding checks total $11,800, deposits in transit total $7,400, and bank service charges are $54. What was Tanners April 30, 2016 cash balance per the bank statement?

A. $41,346.

B. $41,400.

C. $32,600.

D. $32,546.

2. The cash records and the bank statement of Frankel Company showed the following at the end of February 2016: Outstanding checks as of the beginning of February 2016, $13,500; checks written by Frankel Company according to its books during February 2016, $57,700; and checks cleared by the bank during February 2016, $59,500. What was the amount of the outstanding checks at the end of February 2016?

A $13,500.

B $11,700.

C $5,850.

D $7,650.

3. Which of the following statements correctly describes the effect of recording the collection of a $16,000 account receivable for which a 2% sales discount was recorded at the time of collection?

A. Accounts receivable will decrease $15,680.

B. Gross profit will decrease $320.

C. Current assets will remain the same.

D. Net sales will increase $15,680.

4. Which of the following statements is correct?

A. The journal entry to record bad debt expense requires a debit to bad debt expense and a credit to accounts receivable.

B. The journal entry to record bad debt expense requires a debit to bad debt expense and a credit to allowance for doubtful accounts.

C. The journal entry to record the write off of an uncollectible account receivable requires a debit to bad debt expense and a credit to accounts receivable.

D. The journal entry to record the write off of an uncollectible account receivable requires a debit to bad debt expense and a credit to allowance for doubtful accounts.

5. Which of the following journal entries correctly records the collection of an account receivable for which a 1% sales discount was recorded at the time of collection?

A

Cash	xxx
Sales discounts	xxx
Accounts receivable		xxx

B

Cash	xxx
Bad debt expense	xxx
Accounts receivable		xxx

C

Cash	xxx
Sales discounts		xxx
Accounts receivable		xxx

D

Cash	xxx
Gross profit		xxx
Accounts receivable		xxx

6. Which of the following does not correctly describe the effect of a credit card discount?

A Net sales decrease and gross profit decreases.

B Net sales decrease and net income decreases.

C Operating expenses remain the same and net income decreases.

D Neither operating expenses, nor net income is affected.