ACC ch 3-6

Cushman Company had $836,000 in sales, sales discounts of $12,540, sales returns and allowances of $18,810, cost of goods sold of $397,100, and $287,585 in operating expenses. Net income equals:

$119,965.

Hull Company reported the following income statement information for the current year: Sales$416,000 Cost of goods sold: Beginning inventory$141,000 Cost of goods purchased 279,000 Cost of goods available for sale 420,000 Ending inventory 150,000 Cost of goods sold 270,000 Gross profit$146,000 The beginning inventory balance is correct. However, the ending inventory figure was overstated by $26,000. Given this information, the correct gross profit would be:

$120,000.

A company purchases merchandise with a catalog price of $21,500. The company receives a 35% trade discount from the seller. The seller also offers credit terms of 2/10, n/30. Assuming no returns were made and that payment was made within the discount period, what is the net cost of the merchandise?

$13,696.

Garza Company had sales of $144,200, sales discounts of $2,175, and sales returns of $3,460. Garza Company's net sales equals:

$138565

J ammer Company uses a weighted average perpetual inventory system and reports the following: August 2 Purchase 12 units at $12.50 per unit. August 18 Purchase 14 units at $18.00 per unit. August 29 Sale 24 units. August 31 Purchase 17 units at $15.50 per unit. What is the per-unit value of ending inventory on August 31? (Round your per unit answers to 2 decimal places.)

$15.50

A buyer of $7,600 in merchandise inventory failed to take advantage of the vendor's credit terms of 2/15, n/45, and instead paid the invoice in full at the end of 45 days. By not taking advantage of the cash discount, the buyer lost the discount of:

$152.

On March 31 a company needed to estimate its ending inventory to prepare its first quarter financial statements. The following information is available:Beginning inventory, January 1: $4,100Net sales: $70,000Net purchases: $68,000The company's gross margin ratio is 20%. Using the gross profit method, the estimated ending inventory value would be:

$16100

Prentice Company had cash sales of $94,450, credit sales of $83,550, sales returns and allowances of $1,775, and sales discounts of $3,550. Prentice's net sales for this period equal:

$172,675.

A company has sales of $698,400 and cost of goods sold of $279,400. Its gross profit equals:

$419,000.

A company had beginning inventory of 11 units at a cost of $26 each on March 1. On March 2, it purchased 11 units at $46 each. On March 6 it purchased 5 units at $31 each. On March 8, it sold 25 units for $74 each. Using the FIFO perpetual inventory method, what was the cost of the 25 units sold?

$885

KLM Corporation's quick assets are $6,123,000, its current assets are $13,440,000 and its current liabilities are $8,144,000. Its acid-test ratio equals:

0.75.

Beckenworth had cost of goods sold of $10,321 million, ending inventory of $2,989 million, and average inventory of $2,055 million. Its days' sales in inventory equals: (Use 365 days a year.)

105.7 days.

A company's gross profit (or gross margin) was $126,910 and its net sales were $494,200. Its gross margin ratio is:

25.7%.

Mega Skateboard Supplier had net sales of $4.1 million, its cost of goods sold was $1.6 million, and its net income was $0.7 million. Its gross margin ratio equals:

61%.

Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to cost of goods sold using FIFO. DateActivitiesUnits Acquired at CostUnits Sold at Retail May 1 Beginning Inventory. 330 units @ $18 5 Purchase310 units @ $20 10 Sales 230 units @ $28 15 Purchase190 units @ $21 24 Sales 180 units @ $29

7,540

On September 1 of the current year, Scots Company experienced a flood that destroyed the company's entire inventory. Because the company had not completed its month end reporting for August, it must estimate the amount of inventory lost using the gross profit method. At the beginning of August, the company reported beginning inventory of $216,150. Inventory purchased during August was $192,810. Sales for the month of August were $543,900. Assuming the company's typical gross profit ratio is 40%, estimate the amount of inventory destroyed in the flood.

82,620

If a check correctly written and paid by the bank for $472 is incorrectly recorded in the company's books for $407, how should this error be treated on the bank reconciliation?

Subtract $65 from the book balance.

On December 31 of the current year, Plunkett Company reported an ending inventory balance of $212,000. The following additional information is also available: Plunkett sold and shipped goods costing $37,400 to Savannah Enterprises on December 28 with shipping terms of FOB shipping point. The goods were not included in the ending inventory amount of $212,000. Plunkett purchased goods costing $43,400 on December 29. The goods were shipped FOB destination and were received by Plunkett on January 2 of the following year. The shipment was a rush order that was supposed to arrive by December 31. These goods were included in the ending inventory balance of $212,000. Plunkett's ending inventory balance of $212,000 included $14,400 of goods being held on consignment from Carole Company. (Plunkett Company is the consignee.) Plunkett's ending inventory balance of $212,000 did not include goods costing $94,400 that were shipped to Plunkett on December 27 with shipping terms of FOB destination and were still in transit at year-end. Based on the above information, the amount that Plunkett should report in ending inventory on December 31 is:

$154,200

Big Box Store has operated with a 30% average gross profit ratio for a number of years. It had $104,000 in sales during the second quarter of this year. If it began the quarter with $18,400 of inventory at cost and purchased $72,400 of inventory during the quarter, its estimated ending inventory by the gross profit method is:

$18,000

A company purchased $2,300 of merchandise on July 5 with terms 1/10, n/30. On July 7, it returned $250 worth of merchandise. On July 8, it paid the full amount due. The amount of the cash paid on July 8 equals:

$2030

A company has net sales of $803,100 and cost of goods sold of $580,100. Its net income is $29,780. The company's gross margin and operating expenses, respectively, are:

$223,000 and $193,220

A company has sales of $385,800 and its gross profit is $162,300. Its cost of goods sold equals:

$223,500.

Marquis Company uses a weighted-average perpetual inventory system and has the following purchases and sales: August 22. 6 units were purchased at $7 per unit. August 18. 31 units were purchased at $9 per unit. August 29. 28 units were sold. What is the amount of the cost of goods sold for this sale? (Round average cost per unit to 2 decimal places.)

$226.52

Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on May 31, its Cash account shows a debit balance of $26,025. Clayborn's May bank statement shows $23,000 on deposit in the bank. Determine the adjusted cash balance using the following information: Deposit in transit$7,900 Outstanding checks$6,400 Bank service fees, not yet recorded by company$115 A NSF check from a customer, not yet recorded by the company$1,410 The adjusted cash balance should be:

$24,500

Grays Company has inventory of 22 units at a cost of $10 each on August 1. On August 3, it purchased 32 units at $12 each. 24 units are sold on August 6. Using the FIFO perpetual inventory method, what amount will be reported as cost of goods sold for the 24 units that were sold?

$244

Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by check. Ryan's June bank statement shows $26,361 on deposit in the bank. Ryan's comparison of the bank statement to its cash account revealed the following: Deposit in transit3,050 Outstanding checks1,269 Additionally, a $38 check written and recorded by the company correctly, was recorded by the bank as a $83 deduction.The adjusted cash balance per the bank records should be:

$28,187

A company has beginning inventory of 32 units at a cost of $12.00 each on October 1. On October 5, it purchases 22 units at $13.00 per unit. On October 12 it purchases 32 units at $14.00 per unit. On October 15, it sells 66 units. Using the FIFO periodic inventory method, what is the value of the inventory at October 15 after the sale?

$280

A company's normal selling price for its product is $21 per unit. However, due to market competition, the selling price has fallen to $16 per unit. This company's current FIFO inventory consists of 210 units purchased at $17 per unit. Net realizable value has fallen to $14 per unit. Calculate the value of this company's inventory at the lower of cost or market.

$2940

Lucia Company reported cost of goods sold for Year 1 and Year 2 as follows: year 1 year 2 Beginning inventory. $124,500 $130,900 Cost of goods purchased 250,900 279,500 Cost of goods available for sale 375,400 410,400 Ending inventory 130,900 135,900 Cost of goods sold $244,500 $274,500 Lucia Company made two errors: 1) ending inventory at the end of Year 1 was understated by $15,900 and 2) ending inventory at the end of Year 2 was overstated by $6,900. Given this information, the correct cost of goods sold figure for Year 2 would be:

$297,300

A company purchased $3,600 worth of merchandise. Transportation costs were an additional $315. The company returned $250 worth of merchandise and then paid the invoice within the 3% cash discount period. The total cost of this merchandise is:

$3,564.50.

A company has net sales of $906,000 and cost of goods sold of $601,000. Its net income is $108,400. The company's gross margin and operating expenses, respectively, are:

$305,000 and $196,600

On March 31 a company needed to estimate its ending inventory to prepare its first quarter financial statements. The following information is available:Beginning inventory, January 1: $4,500Net sales: $45,000Net purchases: $46,000The company's gross margin ratio is 15%. Using the gross profit method, the cost of goods sold would be:

$38,250

Bedrock Company reported a December 31 ending inventory balance of $415,500. The following additional information is also available: The ending inventory balance of $415,500 included $73,900 of consigned inventory for which Bedrock was the consignor. The ending inventory balance of $415,500 included $25,800 of office supplies that were stored in the warehouse and were to be used by the company's supervisors and managers during the coming year. Based on this information, the correct balance for ending inventory on December 31 is:

$389,700

A company uses the periodic inventory system and had the following activity during the current monthly period. November 1:Beginning inventory. 112 Units @ $20 November 5:Purchased 112 Units @ $22 November 8:Purchased 62 Units @ $23 November 16:Sold 174 Units @ $105 November 19:Purchased 75 Units @ $25 Using the weighted-average inventory method, the company's ending inventory would be:

$4,147

A company had the following purchases and sales during its first year of operations: Purchases Sales January:10 units at $155 7 units February:20 units at $160 5 units May:15 units at $165 9 units September:12 units at $170 8 units November:10 units at $175 11 units On December 31, there were 27 units remaining in ending inventory. Using the perpetual LIFO inventory costing method, what is the cost of the ending inventory? (Assume all sales were made on the last day of the month.)

$4,365.

A flood destroyed a company's warehouse contents on September 12. The following information was the only information that was salvaged: Inventory, beginning: $29,900 Purchases for the period: $18,900 Sales for the period: $56,900 Sales returns for the period: $890 The company's average gross profit ratio is 21%. What is the estimated cost of the lost inventory using the gross profit method?

$4,552.10.

In the process of reconciling its bank statement for January, Maxi's Clothing's accountant compiles the following information: Cash balance per company books on January 30$6,025 Deposits in transit at month-end$2,060 Outstanding checks at month-end$650 Bank service charges$38 EFT automatically deducted monthly, not yet recorded by Maxi$640 An NSF check returned on a customer account$395 The adjusted cash balance per the books on January 31 is:

$4,952

Cushman Company had $840,000 in sales, sales discounts of $12,600, sales returns and allowances of $18,900, cost of goods sold of $399,000, and $288,960 in operating expenses. Gross profit equals:

$409,500.

Cushman Company had $814,000 in net sales, $356,125 in gross profit, and $203,500 in operating expenses. Cost of goods sold equals:

$457,875.

Given the following information, determine the cost of the inventory at June 30 using the LIFO perpetual inventory method. June 1Beginning inventory 20 units at $20 each June 15Sale of 12 units for $50 each June 29Purchase 12 units at $25 each The cost of the ending inventory is:

$460

A company has beginning inventory of 17 units at a cost of $23 each on February 1. On February 3, it purchases 33 units at $25 each. 22 units are sold on February 5. Using the FIFO periodic inventory method, what is the cost of the 22 units that are sold?

$516

A company had the following purchases during its first year of operations: Purchases January:14 units at $124 February:24 units at $134 May:19 units at $144 September:16 units at $154 November:14 units at $164 On December 31, there were 46 units remaining in ending inventory. These 46 units consisted of 6 from January, 8 from February, 10 from May, 8 from September, and 14 from November. Using the specific identification method, what is the cost of the ending inventory?

$6,784.

A company had inventory on November 1 of 5 units at a cost of $28 each. On November 2, they purchased 18 units at $30 each. On November 6 they purchased 14 units at $33 each. On November 8, 16 units were sold for $63 each. Using the LIFO perpetual inventory method, what was the value of the inventory on November 8 after the sale?

$620

A company's inventory records report the following: August 1Beginning balance. 33 units @ $23 August 5Purchase. 28 units @ $22 August 12Purchase 32 units @ $23 On August 15, it sold 66 units. Using the FIFO perpetual inventory method, what is the value of the inventory at August 15 after the sale?

$621

Easton Co. deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on June 30, its Cash account shows a debit balance of $67,209. Easton's June bank statement shows $63,949 on deposit in the bank. Determine the adjusted cash balance using the following information: Deposit in transit$5,900Outstanding checks$2,625Check printing fee, not yet recorded by company$29Interest earned on account, not yet recorded by the company$44 The adjusted cash balance should be:

$67,224

A company purchased $8,000 of merchandise on June 15 with terms of 3/10, n/45. On June 20, it returned $640 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it was entitled to. The cash paid on June 24 equals:

$7,139.

A company's inventory records report the following in November of the current year: BeginningNovember 1. 4 units @ $5 PurchaseNovember 2. 11 units @ $7 PurchaseNovember 12. 7 units @ $9 On November 8, it sold 13 units for $35 each. Using the LIFO perpetual inventory method, what was the amount recorded in the cost of goods sold account for the 13 units sold?

$87

A company purchased $10,300 of merchandise on June 15 with terms of 2/10, n/45, and FOB shipping point. The freight charge, $650, was added to the invoice amount. On June 20, it returned $1,040 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it is entitled to. The cash paid on June 24 equals:

$9,725.

A company's current assets are $20,060, its quick assets are $11,220 and its current liabilities are $12,900. Its quick ratio equals:

0.87.

A company's current assets are $30,920, its quick assets are $16,890 and its current liabilities are $12,970. Its acid-test ratio equals:

1.30.

On April 24 of the current year, The Memphis Pecan Company experienced a tornado that destroyed the company's entire inventory. At the beginning of April, the company reported beginning inventory of $228,150. Inventory purchased during April (until the date of the tornado) was $199,200. Sales for the month of April through April 24 were $643,900. Assuming the company's typical gross profit ratio is 50%, estimate the amount of inventory destroyed in the tornado.

105,400

Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to ending inventory using LIFO. DateActivitiesUnits Acquired at CostUnits Sold at Retail May 1 Beginning Inventory160 units @ $11 5 Purchase225 units @ $13 10 Sales 145 units @ $21 15 Purchase105 units @ $14 24 Sales 95 units @ $22

2,940

Using the following year-end information for Calvin's Clothing, calculate the current ratio and acid-test ratio for the business: Cash$51,680 Short-term investments 8,000 Accounts receivable 46,000 Inventory 150,000 Prepaid expenses 8,520 Accounts payable 102,000 Other current payables 30,100

2.00 and 0.80

Franklin Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on August 31, its Cash account shows a debit balance of $20,662. Franklin's August bank statement shows $20,237 on deposit in the bank. Determine the adjusted cash balance using the following information: Deposit in transit$6,750 Outstanding checks$5,400 Bank service fees, not yet recorded by company$125 The bank collected on a note receivable, not yet recorded by the company$1,050 The adjusted cash balance should be:

21,587

The following information is available for Fenton Manufacturing Company at June 30: Cash in bank account$7,955 Inventory of postage stamps$89 Money market fund balance$13,900 Petty cash balance$500 NSF checks from customers returned by bank$1,017 Postdated checks received from customers$766 Money orders$1,757 A nine-month certificate of deposit maturing on December 31 of current year$9,500 Based on this information, Fenton Manufacturing Company should report Cash and Cash Equivalents on June 30 of:

24,112

A company had net sales of $788,500 and cost of goods sold of $562,260. Its net income was $25,640. The company's gross margin ratio equals:

28.7%

Salmone Company reported the following purchases and sales of its only product. Salmone uses a periodic inventory system. Determine the cost assigned to the ending inventory using FIFO. DateActivitiesUnits Acquired at CostUnits Sold at Retail May 1Beginning Inventory160 units @ $11 5Purchase225 units @ $13 10Sales 145 units @ $21 15Purchase105 units @ $14 24Sales 95 units @ $22

3,355

Using the following year-end information for Bauman, LLC, calculate the current ratio and acid-test ratio: Cash$51,770 Short-term investments10,800 Accounts receivable44,500 Inventory249,000 Prepaid expenses11,430 Accounts payable93,500 Other current payables25,000

3.10 and 0.90.

The following information is available for Birch Company at December 31: Money market fund balance$2,830 Certificate of deposit maturing June 30 of next year$15,400 Postdated checks from customers$1,575 Cash in bank account$22,831 NSF checks from customers returned by bank$690 Cash in petty cash fund$240 Inventory of postage stamps$22 U.S. Treasury bill purchased on December 15 and maturing on February 28 of following year$10,400 Based on this information, Birch Company should report Cash and Cash Equivalents on December 31 of:

36,301

Salmone Company reported the following purchases and sales for its only product. Salmone uses a periodic inventory system. Determine the cost assigned to cost of goods sold using LIFO. DateActivitiesUnits Acquired at CostUnits Sold at Retail May 1Beginning Inventory250 units @ $10 5Purchase270 units @ $12 10Sales 190 units @ $20 15Purchase150 units @ $13 24Sales 140 units @ $21

4,110

Salmone Company reported the following purchases and sales for its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to cost of goods sold using LIFO. DateActivitiesUnits Acquired at CostUnits Sold at Retail May 1Beginning Inventory190 units @ $14 5Purchase240 units @ $16 10Sales 160 units @ $24 15Purchase120 units @ $17 24Sales 110 units @ $25

4,430

Giorgio had cost of goods sold of $9,553 million, ending inventory of $2,221 million, and average inventory of $2,097 million. Its inventory turnover equals:

4.56.

Use the following information for Shafer Company to compute inventory turnover for year 2. Year 2 Year 1 Net sales $655,000 $584,400 Cost of goods sold 390,000 360,990 Ending inventory 79,200 80,880

4.87

Sandoval needs to determine its year-end inventory. The warehouse contains 37,000 units, of which 4,700 were damaged by flood and are not sellable. Another 3,700 units were purchased from Markor Company, FOB shipping point, and are currently in transit. The company also consigns goods and has 5,700 units at a consignee's location. How many units should Sandoval include in its year-end inventory?

41,700

The following information is taken from Reagan Company's December 31 balance sheet: Cash and cash equivalents$8,519 Accounts receivable 70,922 Merchandise inventories 60,862 Prepaid expenses 4,200 Accounts payable$15,050 Notes payable 87,138 Other current liabilities 9,600 If net sales for the current year were $611,000, the firm's days' sales uncollected for the year is: (Use 365 days a year.)

42.4 days

A company's net sales are $810,250, its costs of goods sold are $447,260, and its net income is $110,920. Its gross margin ratio equals:

44.8%.

A company had net sales of $30,200 and ending accounts receivable of $4,000 for the current period. Its days' sales uncollected equals: (Use 365 days a year.)

48.34 days

Salmone Company reported the following purchases and sales of its only product. Salmone uses a periodic inventory system. Determine the cost assigned to ending inventory using LIFO. DateActivitiesUnits Acquired at CostUnits Sold at Retail May 1Beginning Inventory290 units @ $14 5Purchase290 units @ $16 10Sales 210 units @ $24 15Purchase170 units @ $17 24Sales 160 units @ $25

5,500

Jefferson Company has sales of $311,000 and cost of goods available for sale of $271,100. If the gross profit ratio is typically 30%, the estimated cost of the ending inventory under the gross profit method would be:

53,400

In the process of reconciling its bank statement for April, Donahue Enterprises' accountant compiles the following information: Cash balance per company books on April 30$6,200 Deposits in transit at month-end$1,450 Outstanding checks at month-end$770 Bank charge for printing new checks$120 Note receivable and interest collected by bank on Donahue's behalf$620 A check paid to Donahue during the month by a customer is returned by the bank as NSF$630 The adjusted cash balance per the books on April 30 is:

6,070

Salmone Company reported the following purchases and sales of its only product. Salmone uses a periodic inventory system. Determine the cost assigned to cost of goods sold using FIFO. DateActivitiesUnits Acquired at CostUnits Sold at Retail May 1Beginning Inventory310 units @ $16 5Purchase300 units @ $18 10Sales 220 units @ $26 15Purchase180 units @ $19 24Sales 170 units @ $27

6,400

A company's net sales were $735,000, its cost of goods sold was $245,490 and its net income was $66,550. Its gross margin ratio equals:

66.6%.

Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to the ending inventory using FIFO. Date. Activities Units Acquired at CostUnits Sold at Retail May 1. Beginning Inventory 310 units @ $16 5 Purchase300 units @ $18 10. Sales 220 units @ $26 15. Purchase180 units @ $19 24. Sales 170 units @ $27

7,380

Assume that the custodian of a $450 petty cash fund has $56.30 in coins and currency plus $389.00 in receipts at the end of the month. The entry to replenish the petty cash fund will include:

A credit to Cash for $393.70.

Childers Company, which uses a perpetual inventory system, has an established petty cash fund in the amount of $500. The fund was last reimbursed on November 30. At the end of December, the fund contained the following petty cash receipts: December 4Freight charge for merchandise purchased$51 December 7Delivery charge for shipping to customer$75 December 12Purchase of office supplies$40 December 18Donation to charitable organization$59 If, in addition to these receipts, the petty cash fund contains $262.75 of cash, the journal entry to reimburse the fund on December 31 will include:

A credit to Cash of $237.25.

Assume that the custodian of a $645 petty cash fund has $127.50 in coins and currency plus $499.50 in receipts at the end of the month. The entry to replenish the petty cash fund will include:

A debit to Cash Over and Short for $18.00.

If a check correctly written and paid by the bank for $327 is incorrectly recorded in the company's books for $372, how should this error be treated on the bank reconciliation?

Add $45 to the book balance.

On February 3, Smart Company sold merchandise in the amount of $4,100 to Truman Company, with credit terms of 2/10, n/30. The cost of the items sold is $2,830. Smart uses the perpetual inventory system and the gross method. Truman pays the invoice on February 8, and takes the appropriate discount. The journal entry that Smart makes on February 8 is:

Cash 4,018 Sales discounts 82 Accounts receivable 4,100

Spencer Co. has a $300 petty cash fund. At the end of the first month the accumulated receipts represent $53 for delivery expenses, $167 for merchandise inventory, and $22 for miscellaneous expenses. The fund has a balance of $58. The journal entry to record the reimbursement of the account includes a:

Credit to Cash for $242.

A company purchased $2,700 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $650 worth of merchandise. On July 12, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the payment on July 12 is:

Debit Accounts Payable $2,050; credit Merchandise Inventory $41; credit Cash $2,009.

At the end of the day, the cash register tape shows $1,180 in cash sales, but the count of cash in the register is $1,235. The proper entry to account for this excess is:

Debit Cash $1,235; credit Sales $1,180; credit Cash Over and Short $55.

At the end of the day, the cash register's record shows $1,260, but the count of cash in the cash register is $1,250. The correct entry to record the cash sales is

Debit Cash $1,250; debit Cash Over and Short $10; credit Sales $1,260.

A company had $62 missing from petty cash that was not accounted for by petty cash receipts. The correct procedure is to:

Debit Cash Over and Short for $62.

Havermill Co. establishes a $300 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $78 for Office Supplies, $147 for merchandise inventory, and $27 for miscellaneous expenses. The fund has a balance of $48. On October 1, the accountant determines that the fund should be increased by $60. The journal entry to record the establishment of the fund on September 1 is:

Debit Petty Cash $300; credit Cash $300.

A company wants to decrease its $200.00 petty cash fund to $100.00. The entry to reduce the fund is:

Debit to Cash $100.00; credit Petty Cash $100.00.

Havermill Co. establishes a $320 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $80 for Office Supplies, $151 for merchandise inventory, and $29 for miscellaneous expenses. The fund has a balance of $60. On October 1, the accountant determines that the fund should be increased by $64. The journal entry to record the reimbursement of the fund on September 30 includes a:

Debit to Office Supplies for $80.

During the month of July, Clanton Industries issued a check in the amount of $756 to a supplier on account. The check did not clear the bank during July. In preparing the July 31 bank reconciliation, the company should:

Deduct the check amount from the bank balance.