Internal control consists of the plan of organization and all of the related methods and measures adopted within a business to (a) safeguard its assets, and (b) enhance the accuracy and reliability of its accounting records. The three primary accounting problems with accounts receivable arc: (I) recognizing, (2) depreciating, and (3) disposing Under a perpetual inventory system, the cost of goods sold is determined each time a sale occurs. The gross profit section for a merchandising company appears on both the multiple-step and single-step forms of an income statement. If the unit price of inventory is increasing during a period, a company using the LIFO inventory method will show less gross profit for the period, than if it had used the FIFO inventory method. All reconciling items in determining the adjusted cash balance per books require the depositor to make adjusting journal entries to the Cash account. An error that overstates the ending inventory will also cause net income for the period to be overstated If a company uses the allowance method to account for uncollectible accounts, the entry to write off an uncollectible account only involves balance sheet accounts. All of the following are parties to a check except the A 90-day note dated June 14 has a maturity date of An aging of a company's accounts receivable indicates that 4.000 are estimated to be uncollectible. Allowance for Doubtful Accounts has a $900 credit balance, the adjustment to record bad debts for period will require a