Question

Question 3 0.2 pts Match how to treat the item for a bank reconciliation Bank service fee Interest earned on bank account [Choose balance AFTER the bank reconciliation add to cash ledger balance BEFORE the bank reconciliation add to bank subtract from bank subtract from cash ledger Ending balance on the bank statement [ Choose Question 4 0.2 pts Which statement is true regarding cash sales? We always recognize the sale at the agreed upon transaction price regardless of how the customer pays for it. The company will record a higher sale amount if the customer pays with paper cash rather than paying with a debit card. o If a customer pays with a credit card, it is not considered a cash sale. O If a customer pays with a check, we record the sale as if it was on account.

Answer 1

Part 3)Match the following

Bank service Fee -------- Subtract from Bank

Interest earned on bank account -----Add to Cash ledger

Ending balance on bank statement-------Balance before bank reconciliation

Part 4)OPTION A------we always recognize the sale at agreed upon transaction price regardless of how the customer pays for it

The above statement is true.

Option C and D are wrong since credit card sales are considered as cash sales and check sales are also considered as cash sales. Option B is wrong since sale is recorded at agreed transaction price.