The Following Information Is Available to Reconcile Sleepy Time Bedding's

question 40

Multiple Choice

The following information is available to reconcile Sleepy Time Bedding's book balance of cash with its bank statement cash balance as of July 31: What is the appropriate journal entry to record the collection made by the bank?

• A) Debit to cash $9,500 credit to accounts receivable $9,500.
• B) Credit to accounts receivable $9,500 credit to cash $9,500.
• C) Debit to cash $9,452 debit to collection expense $48 credit accounts receivable $9,500.
• D) Debit to cash $9,452 debit to collection expense $48 credit notes receivable $9,500.
• E) No adjusting entry is necessary.

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Definitions:

Individual Accounts

Financial accounts that are owned by a single individual, as opposed to joint accounts owned by multiple parties.

Standard Account Forms

Preset document templates for financial transactions and accounts record-keeping.

New Balance

The updated amount in an account following recent transactions or adjustments.

Transposition

An error in which the order of the digits is changed, such as writing $542 as $452 or $524.