12. Inte al control d protects from e guarantee the company will campo d ensure that business Information is one the bar 13. The amount of deposits in Hount of deposits in transit is included a. deduction from the balance the company's b. deduction from the balance perbank e n e addition to the balance per bank statement d. addition to the balance per company books 14. The bank reconciliation a. should be prepared by an employee who records castrech b. is part of the internal control system o is for information purposes only d. is sent to the bank for verification ) 15. The amount of the outstanding checks is included on the bank reconciliation as a. deduction from the balance per company's records b. addition to the balance per bank statement deduction from the balance per bank statement d. addition to the balance per company's records 200 16. Harper Company lends Hewell Company $40,000 on March 1, accepting a four-month, 6% interest What adjusting entry should be made before the financial statements are prepared by Harper on March 317 a. Cash 200 Interest Revenue 200 b) Interest Receivable 800 Interest Revenue 800 e. Interest Receivable 200 Interest Revenue d. Notes Receivable 40,000 Cash 40,000 17. A $135 petty cash fund has cash of $18 and receipts of $120. The journal entry to replenish the would include a a. credit to Petty Cash for $120 b. debit to Cash for $120 c. credit to Cash Short and Over for $3 di credit to Cash for $102 18. Dalton Company uses the allowance method to account for uncollectible receivables. D hat the Irish Company account is uncollectible. To write off this account, Dalton should debit a. Bad Debt Expense and credit Accounts Receivable b. Bad Debt Expense and credit Allowance for Doubtful Accounts c. Allowance for Doubtful Accounts and credit Accounts Receivable d. Accounts Receivable and credit Allowance for Doubtful Accounts The counts receivable to m e how freg Frequently during the year the accounts receivable are convers the number of days of counts receivable outstanas the fir market value of accounts receiva d the efficiency of the accounts payable un h closes t collectible include all of the following SLEEP the custom at account may be 20. Indications that are any's accounts to record outstanding checks? bis making small but regular payments e files for bankruptcy ad cannot be located What entry is required in the company's accounts to a. debit Accounts Receivable credit Cash b. debit Cash; credit Accounts Receivable c. debit Cash: credit Accounts Payable d. no entry required 22. Which of the following items that appeared on the bank recom a. bank service charges b. deposits in transit c. NSF checks d. a check for $630, recorded in the check register for $360 od on the bank reconciliation did not require a journal ent ollectible receivables are the allowance method and the 23. The two methods of accounting for uncollectible receivables are the a. equity method b. direct write-off method c. interest method d. cost method 24. To record estimated uncollectible receivables using the allowance method, the adjusting a. debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts b. debit to Accounts Receivable and a credit to Allowance for Doubtful Accounts c. debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable d. debit to Loss on Credit Sales and a credit to Accounts Receivable 25. The cash account in the company's ledger is a(n) a. asset with a normal debit balance b. asset with a normal credit balance c. liability with a normal debit balance d. liability with a normal credit balance
