Accounting Chapters 5-8 Journaling and Bank Reconciliation Study Guide :3

I WANT

Method for recording the purchase of goods ON ACCOUNT from a manufacturer

Debit Inventory
Credit Accounts Payable

Method for recording the return of goods ON ACCOUNT to a manufacturer

Debit Accounts Payable
Credit Inventory

Method for recording the sale of goods with cash

Debit Cash
Credit Sales Revenue

Method for recording the cost of goods sold

Debit Cost of Goods Sold
Credit Inventory

Method for recording the return of goods by a customer, in which the customer is refunded via gift cards

Debit Sales, Returns & Allowances
Credit Accounts Recievable

Method for recording the return of goods to inventory

Debit Inventory
Credit Cost of Goods Sold

Method for recording the return of goods estimated for the following year (expected refund payments)

Debit Sales, Returns, & Allowances
Credit Refund Liability

Method for recording the cost of goods estimated to be returned in the following year (expected inventory returns)

Debit Inventory - Estimated Returns
Credit Cost of Goods Sold

Method for recording a bank service charge on the bank reconciliation

Debit Bank Charges Expense
Credit Cash

Method for recording outstanding checks & deposits in transit

No journal entry is required

Method for recording interest earned on the bank reconciliation

Debit Cash
Credit Interest Revenue

Recording the following entry: A cash payment is made to Starbucks to purchase coffee for a business client

Debit Office Expense
Credit Cash

Recording the following entry: A cash payment is made for supplies purchased from Office Depot

Debit Supplies Expense
Credit Cash

Recording the following entry: A cash payment is made to UPS to deliver goods to a customer

Debit Delivery Expense
Credit Cash

Recording the following entry: A cashier rung up sales totaling $6,100 but only had $6,097 to deposit

Debit Cash and Cash Shortage
Credit Sales Revenue

Record the following entry: A company estimates $900 of bad debts for the current period

Debit Bad Debt Expense

Credit Allowance for Doubtful Expenses

Record the following entry: A company writes off $800 receivable

Debit Allowance for Doubtful Expenses

Credit Accounts Receivable

Record the following entry: A customer pays a $800 check that was written off

Reverse write-off: Debit: Accounts Receivable

Credit: Allowances for Doubtful Accounts

Record collection: Debit: Cash

Credit: Accounts Receivable

Record the following entry: Establishing a Notes Receivable

Debit: Note Receivable
Credit: Cash

Record the following entry: Interest accrued, but not yet received

Debit: Interest Receivable

Credit: Interest Revenue

Record interest received at maturity

Debit: Cash
Credit: Interest Revenue (accrued current for the year) & Interest Receivable (accrued from the prior year)

Record principal received

Debit: Cash
Credit: Notes Receivable

A company lends $10,000 to an employee who signed a 9%, 6-month promissory note. The entry made by the company to record the establishment of the loan to the employee will include a:

Debit to Notes Receivable
Credit to Cash

At the end of the day, the cashiers rung up sales of $5,000 and counted on the cash count sheets and deposited $5,100, the accounting department would make a journal entry for the day's sales that includes

Debit to Cash

Credit to Sales Revenue

Credit to Cash Overage

The bank credited your account for a deposit that should have been deposited into another customer's bank account, not yours. This bank error should be a(n) ____ on a bank reconciliation.

deduction from the bank balance

In a bank reconciliation, interest revenue earned on the bank account balance is

added to the book balance

This month's bank statement shows that the bank incorrectly credited ABC Corp.'s account for a $600 deposit that should have been credited to XYZ Corp.'s account. How would this item be treated on ABC's bank reconciliation?

It would be deducted from the bank balance.

The bank credited your account for a deposit that should have been deposited into another customer's bank account, not yours. This bank error should be a(n) _____ on a bank reconciliation.

deduction from the bank balance