QUESTION 1 (15 POINTS) John King deposits all cash receipt by check. At the clos

Question

QUESTION 1 (15 POINTS) John King deposits all cash receipt by check. At the close of business on September 30, 2017, its Cash account shows an $ 11,589 debit balance. King's September 30 bank statement shows $ 10,555 on deposit in the bank. Prepare a bar reconciliation for King using the following information: Outstanding checks as of September 30 total$ 1,829. The September 30 bank statement lists a $16 bank service charge. Check No. 415, listed with canceled checks, was correctly drawn for $467 in payment of a utility bill on September 12. King mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $476. The September 30 cash receipts of $ 2,856 were placed in the bank's night depository after a. b. c. d. banking hours and were not recorded on the September 30 bank statement. QUESTION 2 (20 POINTS) Enter the letter for each term in the blank space beside the definition that most closely matches. A. Sales discount B. Credit period C. Discount period D. FOB destination E. FOB shipping point F. Gross profit G. Merchandise inventory H. Purchase discount I. Cash discount J. Trade discount ownership of goods is transferred when the delivery to the buyer's place of business Goods a company owns and expects to sell to its customers. Time period in which a cash discount is available. Time period that can pass before a customer's payment is due. Difference between net sales and the cost of goods sold. Seller's description of a cash discount granted to buyers in return for early payment. Reduction in a receivable if it's paid within the discount period. 1. Ownership of goods is transferred when the seller delivers goods to the carrier. Purchaser's description of a cash discount received from a supplier of goods. Reduction below list or catalog price that is negotiated in setting the price of goods.

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John King Bank Reconciliation September 30, 2017 Balance per bank statement $ 10555.00 Add: Deposit in transit 2856.00 13411.00 Deduct: Outstanding checks 1829.00 Adjusted balance per bank $ 11582.00 Balance per books $ 11589.00 Add: Error in recording check no. 415 ($476 - $467) 9.00 11598.00 Deduct: Bank service charges 16.00 Adjusted balance per books $ 11582.00

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