How would outstanding checks be dealt with in a bank reconciliation?
a. added to company's book balance
b. deducted from company's book balance
c. added to bank statement balance
d. deducted from bank statement balance
d
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Cannibalized income is additional income to a company as a result of a new product
Indicate whether the statement is true or false
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What will be an ideal response?
MacKenzie Company sold $300 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 1.5% service charge for sales on its credit cards and credits MacKenzie's account immediately when sales are made. The journal entry to record this sale transaction would be:
A. Debit Cash $295.50 and credit Sales $295.50. B. Debit Cash $295.50; debit Credit Card Expense $4.50 and credit Sales $300. C. Debit Cash of $300 and credit Accounts Receivable $300. D. Debit Cash of $300 and credit Sales $300. E. Debit Accounts Receivable $300 and credit Sales $300.