Digdug corporation had outstanding checks totaling 5400 on, Ask an Expert

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DigDug Corporation had outstanding checks totaling $5,400 on its June bank reconciliation. In July, DigDug issued checks totaling $38,900. The July bank statement shows that $26,300 in checks cleared the bank in July. The amount of outstanding checks on DigDug's July bank reconciliation should be:

$12,600.

$18,000.

$5,400.

$7,200.

Merchandise was sold on credit for $3,000, terms 1/10, n/30. How should the seller record the cash collection?

Debit Cash, $3,000, and credit Accounts Receivable, $3,000, if collected within the discount period.

Debit Cash, $3,000, credit Accounts Receivable, $2,970, and credit Sales Discounts, $30, if collected within the discount period.

Debit Cash, $3,000, credit Accounts Receivable, $2,970, and credit Sales Discounts, $30, if collected after the discount period.

Debit Cash, $3,000, and credit Accounts Receivable, $3,000, if collected after the discount period.

Your store buys ice cream at a cost of $1.50 a half gallon and sells it for $4 a half gallon. General and administrative expenses are $0.75 per half gallon. Which of the following statements is true?

	Your gross profit per half gallon is $2.50.
	Your gross profit per half gallon is $1.75.
	The difference between the selling price and the cost is recorded in the gross profit account.
	The difference between the selling price and the cost is recorded in the net profit account

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9797592

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