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

question 1

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:

Coins

Metallic forms of money that are legally authorized by a government, typically used as a medium of exchange for goods and services.

Liquid Investments

Investments that can be easily converted into cash without significantly affecting their market price.

Internal Controls

Procedures and policies implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Sarbanes-Oxley Act

A federal law in the United States enacted to protect investors by improving the accuracy and reliability of corporate disclosures.