DigDug Corporation had outstanding checks totaling $5,400 on its June bank reconciliation. In July, DigDug issued checks totaling $38,900. The July bank statement shows that $26,300 in checks cleared the bank in July. The amount of outstanding checks on DigDug's July bank reconciliation should be:
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$12,600. |
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$18,000. |
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$5,400. |
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$7,200.
Merchandise was sold on credit for $3,000, terms 1/10, n/30. How should the seller record the cash collection?
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Debit Cash, $3,000, and credit Accounts Receivable, $3,000, if collected within the discount period. |
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Debit Cash, $3,000, credit Accounts Receivable, $2,970, and credit Sales Discounts, $30, if collected within the discount period. |
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Debit Cash, $3,000, credit Accounts Receivable, $2,970, and credit Sales Discounts, $30, if collected after the discount period. |
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Debit Cash, $3,000, and credit Accounts Receivable, $3,000, if collected after the discount period.
Your store buys ice cream at a cost of $1.50 a half gallon and sells it for $4 a half gallon. General and administrative expenses are $0.75 per half gallon. Which of the following statements is true?
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Your gross profit per half gallon is $2.50. |
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Your gross profit per half gallon is $1.75. |
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The difference between the selling price and the cost is recorded in the gross profit account. |
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The difference between the selling price and the cost is recorded in the net profit account |
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