Accounting 320 Midterm || with 100% Error-free Answers.

Journal Entry for $10k sale on Account Journal Entry for Collection of $10K cash 2 week later correct answers Accounts Receivable 10,000 Sales Revenue 10,000 Cash 10,000 Accounts Receivable 10,000 What is a bill of lading? What's the significance for accountants? correct answers Shipping document (Ex. Fedex, UPS, Post Office) Evidences revenue recognition (shows revenue was earned and product was shipped) What's a purchase requisition? correct answers A purchase requisition is an internal request for goods and services What's a purchase order? correct answers A purchase order is an approved purchase requisition sent to the vendor Why is the distinction between a purchase requisition and a purchase order? correct answers This extra step/distinction is important for internal purposes (prevents fraud, abuse, waste, etc.) When we receive a purchase order from a new customer requesting goods be shipped on account, what should we probably do first? What Income Statement/Balance Sheet account will this impact? correct answers It's important to run a credit check to ensure a reasonable chance of payment Income Statement: Bad Debt Expense Balance Sheet: Allowance for Doubtful Accounts When customers mail in their payment, in addition to their check, what's also included in the envelope correct answers With a customer's payment comes the remittance advice (tear off portion at the bottom of the invoice) which includes the customer's names, account number, amount due, date due, etc. What is a cash receipts pre-list? correct answers Listing of all checks received that day (Excel, Word, handwritten) The numbers from the cash receipts pre-list should tie to what other source document? correct answers The numbers on the cash receipts pre-list should match the bank deposit slip It is crucial to distribute duties in order to prevent fraud (minimum of two people handling customer cash) What two items are most important on a receiving report? correct answers Quality and Quantity