A Bank Reconciliation Included an Outstanding Check of $1,300 for the Purchase

question 46

Multiple Choice

A bank reconciliation included an outstanding check of $1,300 for the purchase of supplies. The journal entry to record this reconciling item:

• A)should debit Supplies and credit Cash for $1,300.
• B)should debit Cash and credit Supplies for $1,300.
• C)should debit Accounts Receivable and credit Cash for $1,300.
• D)is not required.

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Definitions:

Activity Bases

Factors or units of measure that are used to allocate costs to cost objects, often related to production or sales volume.

Quality Inspections

The systematic examination of goods or services to ensure they meet specified standards of quality and performance.

Machine Setups

This term refers to the preparations and adjustments made to machines before production runs, affecting manufacturing efficiency and costs.

Finished Goods

Products that have completed the manufacturing process and are ready for sale to customers.