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

question 14

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:

Tax Reports

Documents prepared for the government that detail an entity's income, expenses, and other tax-related information for fiscal purposes.

Profit Reports

Financial documents that summarize the revenue, expenses, and profits of a business within a specific period.

Product Line

A group of related products manufactured or sold by a company, often differentiated by function, target market, or price range.

Service Business

A commercial enterprise that provides professional, skilled, or other intangible services rather than goods.