Credit terms for a purchase include the amounts and timing of payments from a buyer to a seller.

Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on May 31, its Cash account shows a debit balance of $17,025. Clayborn’s May bank statement shows $15,800 on deposit in the bank. Determine the adjusted cash balance using the following information:       Deposit in transit $ 5,200 Outstanding checks $ 4,600 Bank service fees, not yet recorded by company $ 25 A NSF check from a customer, not yet recorded by the company $ 600 The adjusted cash balance should be:

Proper internal control would require that a department manager inform the purchasing department of its needs for additional merchandise by preparing and signing a purchase requisition which lists the merchandise needed and requests that it be purchased.

The Cash Over and Short account:

FOB shipping point means that the buyer accepts ownership when the goods arrive at the buyer’s place of business.

The number of days’ sales uncollected is used to:

The gross margin ratio is defined as gross margin divided by net sales.

Proper internal control would require that a department manager inform the purchasing department of its needs for additional merchandise by preparing and signing a purchase requisition which lists the merchandise needed and requests that it be purchased.

A voucher system establishes procedures for verifying, approving, and recording obligations for eventual cash disbursement.

Jasper makes a $25,000, 90-day, 7% cash loan to Clayborn Co. The amount of interest that Jasper will collect on the loan is: (Use 360 days a year.)