A voucher is an external document used to accumulate information to control cash disbursements and to ensure that a transaction is properly recorded.

Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by check. Ryan’s June bank statement shows $18,361 on deposit in the bank. Ryan’s comparison of the bank statement to its cash account revealed the following:       Deposit in transit 1,450 Outstanding checks 837 Additionally, a $29 check written and recorded by the company correctly was recorded by the bank as a $92 deduction. The adjusted cash balance per the bank records should be:

Morgan, Inc. uses a perpetual inventory system and the net method of recording purchases. On May 12, a merchandise purchase of $15,000 was made on credit, 2/10, n/30. The journal entry to record this purchase is:

A voucher is an internal document or file:

A retailer buys products from manufacturers and sells them to wholesalers.

Most large thefts occur from payment of fictitious invoices, which makes control of cash disbursements especially important for companies.

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: