Accting Test 678

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Days sales uncollected ratio

current a/r divided by the net sales x's 365
Journalize short on cash drawer

Cash Debit 1142, Cash over short 28, Sales Total 1172
The internal control feature that is specific to petty cash is

the inprest system
Journalize petty cash

Beginning month Petty Cash debit, cash credit' end of month: Expenses debit, cash over short and cash credit
What is the control advantage of the net method of accounting for inventory purchases

it highlights the inefficiency of losing purchase discounts
The party that holds a note receivable is called the

maker
The function of the credit department is to

evaluate customers who apply for credit
Compute a/r turnover

netsales 754000, divided by a/r current yr + last yr/2
The purposed for recording the bad debts expense and allowance for doubtful accounts

record bad debt expense