Corbin Company Was Charged $25 for a Check Printing Fee

question 138

Multiple Choice

Corbin Company was charged $25 for a check printing fee associated with their checking account.What journal entry is required?

• A)Debit Miscellaneous Expense for $25 and credit Accounts Payable for $25.
• B)Debit Miscellaneous Expense for $25 and credit Accounts Receivable for $25.
• C)Debit Miscellaneous Expense for $25 and credit Cash for $25.
• D)No journal entry is required.

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Definitions:

Conversion Costs

The combined costs of direct labor and manufacturing overhead, required to transform raw materials into finished goods.

Work in Process Inventory

The value of goods in production but not yet completed, often considered an asset on the balance sheet.

Lean Principles

A methodology originating from the Toyota Production System that seeks to maximize customer value while minimizing waste within manufacturing and related processes.

Cycle Efficiency

The effectiveness and speed with which a business completes its operational cycle from start to finish.