25) Z-Mart made a bank deposit on September 30 that did not appear on September's bank statement. In preparing September's bank reconciliation, the company should

A Deduct the deposit from September's book balance and add it to October's book balance

B Add the deposit to the book balance of cash

C Deduct the deposit from the bank statement balance

D Send the bank a debit memorandum

E Add the deposit to the bank statement balance

24) In reconciling the bank balance, an unrecorded debit memorandum for printing cheques should be *

A Noted as a memo

B Added to the bank balance of cash

C Added to the book balance of cash

D Deducted from the bank balance of cash

E Deducted from the book balance of cash

23) DVDs usually sell for $14 per unit, and have a profit margin of 25%. However, the expected selling price has fallen to $7 per unit. The Movie Company's current inventory includes 200 units purchased at $10 per unit. Calculate the value of the inventory at the lower of cost and net realizable value.

A $1,400

B $1,800

C $1,350

D $2,000

E $1,500

22) The difference between a company's gross profit on sales and total operating expenses is

A Income from operations

B Net sale

C Profit

D Income summary

E Net loss

21) A debit to Sales Returns and Allowances and a credit to Accounts Receivable *

A Recognizes that a customer returned merchandise

B Requires a debit memorandum to recognize the customer's return

C Is not possible; it should be a credit to Sales Returns and Allowances and a debit to Accounts Receivable

D All of the above

E Recognizes a cash discount taken by a customer