FUNDAMENTAL ACCT PRIN CONNECT ACCESS
24th Edition
ISBN: 9781266494604
Author: Wild
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 9, Problem 6BTN
Many commercials ¡include comments similar to the following: “We accept VISA” or “We do not accept American Express.” Conduct your own research by contacting at least five companies via interviews, phone calls, or the Internet to determine the reason(s) companies discriminate in their use of credit cards. Collect information on the fees charged by the different cards for the companies contacted. (The instructor can assign this as a team activity.)
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Obtaining credit begins with you. After you complete a credit application, the lender decides if you
are a good risk.
Agencies that collect credit information about individuals are called credit bureaus. For a fee,
they provide information about you that lenders need to decide if you are a good risk. The
information you provide on your application is checked against the information the credit bureaus
have collected about you.
Why is your credit application approved or denied?
DENIED
0000
SORRY!
to you
fra
C cand hand
Collateral
Physical appearance
Character
Political affiliation
Marital status
Capacity
e
yo
yhing
ring you
Bestar
lates
Onge
y
Bad news-your credit application was denied. What are the major factors about you that the
lender used to evaluate your creditworthiness? Check all that apply.
Select reasons why you were probably turned down for credit. Check all that apply.
Large amount of available credit relative to income
False or misleading information on your application…
a) Should every company switch from the traditional three-way matching
process (purchase orders, receiving reports, and supplier invoices) to the two-
way match (purchase orders and receiving reports) used in evaluated receipt
settlement (ERS)? Why, or why not?
b) Imagine you had just started an internship and you visited your first client
who gave you the following list some they do:
1. Cancellation of the voucher package by the cashier once checks are signed.
2. Prenumbering and periodically accounting for all internal source documents
3. Tokenization
4. Periodic physical count of inventory
5. Mailing Monthly Statements
6. Reconciliation of invoices with packing lists and sales order
7. Performing data integrity controls
8. Using requests for proposals to solicit competitive bids for capital assets
9. Using a planned production schedule
10. Use biometric authentication
Required
Choose five of the activities and (1) Identify which business cycle(s) the activity
is mostly associated…
You are the auditor for Lambda Ltd, a sportswear company. The following is an excerpt from an interview between you and the sales ledger clerk, Sandy.
Auditor: What are the controls over the cash receipts your company receives?Sandy: Good. The receptionist opens the mail each day and makes sure each cheque is crossed. She then gives me all the cheques to post against the sales ledger.Auditor: What happens then?Sandy: I make a list of all the cheques received – for control purposes. Then I record each cheque against each customer’s record on the sales ledger. After the cheques have accumulated for a couple of days, I give them to the receptionist to bank. The receptionist keeps all the bank-in slips as a record in case there are any queries later.Auditor: Are there ever any difficulties between the cheque value and the associated invoice?Sandy: Sometimes there are. Usually it relates to a special discount that has been authorised by me or the sales manager. If the differences are not…
Chapter 9 Solutions
FUNDAMENTAL ACCT PRIN CONNECT ACCESS
Ch. 9 - Prob. 1DQCh. 9 - Why does the direct write-off method of accounting...Ch. 9 - Prob. 3DQCh. 9 - Why might a business prefer a note receivable to...Ch. 9 - Prob. 5DQCh. 9 - Prob. 6DQCh. 9 - J Refer to the financial statements and notes of...Ch. 9 - GOOGLE 8. Q Refer to the balance sheet of Google...Ch. 9 - Prob. 9DQCh. 9 - Prob. 10DQ
Ch. 9 - Credit card sales Prepare journal entries for the...Ch. 9 - Direct write-off method P1 Solstice Company...Ch. 9 - Recovering a bad debt P1 Solstice Company...Ch. 9 - Distinguishing between allowance method and direct...Ch. 9 - Allowance method for bad debts P2 Gomez Corp. uses...Ch. 9 - Reporting allowance for doubtful accounts P2 On...Ch. 9 - Prob. 7QSCh. 9 - Prob. 8QSCh. 9 - Aging of receivables method P3 ^ Net Zero...Ch. 9 - Prob. 10QSCh. 9 - Prob. 11QSCh. 9 - QS 9-9
Note receivable honored
P4
On August 2, Jun...Ch. 9 - Prob. 13QSCh. 9 - Prob. 14QSCh. 9 - Prob. 15QSCh. 9 - Prob. 16QSCh. 9 - Prob. 17QSCh. 9 - Exercise 9-1
Accounts receivable subsidiary...Ch. 9 - Prob. 2ECh. 9 - Exercise 9-3
Sales on store credit card
C1
Z-Mart...Ch. 9 - Exercise 9-4
Direct write-off method
Dexter...Ch. 9 - Exercise 9-5 Writing off receivables P2
On January...Ch. 9 - Exercise 9-6 Percent of sales method; write-off...Ch. 9 - Exercise 9-7 Percent of accounts receivable...Ch. 9 - Exercise 9-8 Aging of receivables method P3
Daley...Ch. 9 - Exercise 9-9 Percent of receivables method...Ch. 9 - Exercise 9-10 Aging of receivables schedule...Ch. 9 - Exercise 9-10
Estimating bad debts
P3
At December...Ch. 9 - Exercise 9-11
Notes receivable...Ch. 9 - Exercise 9-12
Notes receivable transactions...Ch. 9 - Exercise 9-14 Honoring a note P4
Prepare journal...Ch. 9 - Exercise 9-15 Dishonoring a note P4
Prepare...Ch. 9 - Exercise 9-16 Selling and pledging accounts...Ch. 9 - Exercise 9-17 Accounts receivable turnover A1 Q...Ch. 9 - Problem 9-1A Sales on account and credit card...Ch. 9 - Problem 9-2A Estimating and reporting bad debts P2...Ch. 9 - Problem 9-3A Aging accounts receivable and...Ch. 9 - Problem 9-4A Accounts receivable transactions and...Ch. 9 - Problem 9-5A Analyzing and journalizing notes...Ch. 9 - Problem 9-1B Sales on account and credit card...Ch. 9 - Problem 9-2B Estimating and reporting bad debts P2...Ch. 9 - Problem 9-3B Aging accounts receivable and...Ch. 9 - Problem 9-4B Accounts receivable transactions and...Ch. 9 - Prob. 5BPSBCh. 9 - SP 9 Santana Rey: owner of Business Solutions,...Ch. 9 - Prob. 1GLPCh. 9 - Prob. 1AACh. 9 - Prob. 2AACh. 9 - Prob. 3AACh. 9 - Anton Blair is the manager of a medium-size...Ch. 9 - Prob. 2BTNCh. 9 - Prob. 3BTNCh. 9 - Prob. 4BTNCh. 9 - Prob. 5BTNCh. 9 - Many commercials ¡include comments similar to the...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Adel & Co is a company manufacturing various types of mini bar refrigerators for hotels. The company does not have an internal control department. Below is the company’s sale and receivables system:i. Sales staff will carry out credit references checks for all new customers. ii. These references will be submitted to the finance department, where the finance manager will approve on accepting a new customer if the customer has a good credit rating. iii. Once this is completed, an appropriate credit limit is set for each customer by the financial controller.iv. Customers must use a standard sales order form when placing orders.v. Sales clerks will enter details of the sales order into the system which then check if the goods ordered are available and if the customer has sufficient credit limit available for this order. vi. All forms are pre numbered sequentially.vii. Prices for all products are stored in the system’s master file. viii. These details can only be amended by the…arrow_forwardYour small business client, Phillip’s Computer Repair Shop, is experiencing financial difficulties and has to lay off one of its four employees in the accounting area. Phillip has asked you to determine what duties should be assigned to the three remaining employees—Abigail, Bryan, and Chris—to maintain the best separation of duties.Required:Assign the following 10 duties to each of the three employees.a. Reconcile bank statement.b. Open mail and list checks.c. Prepare checks for Phillip’s signature.d. Prepare payroll checks.e. Maintain personnel records.f. Prepare deposit and take to bank.g. Maintain petty cash.h. Maintain accounts receivable records.i. Maintain general ledger.j. Reconcile accounts receivable records to general ledger account.arrow_forwardAnswer the following questionsYou were hired to assist Oman based Company in designing an accounting system for Oman Co., Ltd. has developed a list of the journals, ledgers, reports and documents that he thinks Oman Co., Ltd. The company asks you to complete the following tasks:c) Design a report to assist in managing credit sales and cash collections.d) What types of journals, ledgers and blank forms for various documents ( Sales invoices, purchase orders etc)arrow_forward
- Jason & Co is a company manufacturing various types of mini bar refrigerators for hotels. The company does not have an internal control department. Below is the company’s sale and receivables system:i. Sales staff will carry out credit references checks for all new customers. ii. These references will be submitted to the finance department, where the finance manager will approve on accepting a new customer if the customer has a good credit rating. iii. Once this is completed, an appropriate credit limit is set for each customer by the financial controller.iv. Customers must use a standard sales order form when placing orders.v. Sales clerks will enter details of the sales order into the system which then check if the goods ordered are available and if the customer has sufficient credit limit available for this order. vi. All forms are pre numbered sequentially.vii. Prices for all products are stored in the system’s master file. viii. These details can only be amended by the…arrow_forwardImagine you're trying to select a new credit card. Identify 4 attributes of a credit card you would consider in making your selection. make a brief description of each attribute and how you would use it to select a credit card. Where would you file a complaint if the issuer of the credit card you select later treats you unfairly?arrow_forwardWhich of the following is the best and most convenient safeguard against cheating?a. Adapt take-home tests and give the accounting students enough time to answer themb. Create three or more equivalent sets of testsc. Deploy five proctors to watch a class of 50.d. Give essay type of examinatione. Structure the seating arrangement such that accounting students would not look over answers of othersarrow_forward
- Answer if true or false. If false write the word that makes the statement incorrect/wrong. 1. In other words, "F.O.B. destination" signifies that the buyer receives title on the shipment date. 2. The sale of an extended warranty contract on a washer and dryer is an example of revenue earned from ongoing operating activities. 3. Because it increases the amount of customers, many businesses accept credit cards when selling goods.arrow_forwardWhich of the following is not a reason for the Jones Hardware Store to accept credit cards from customers? Group of answer choices A)Jones can receive its money faster than if it directly extended credit to the customer by an account receivable. b)The credit card company offers a discount to Jones so that Jones will have more money available for operations. C)Jones will not have to be concerned with nonsufficient funds checks from customers. d)Jones will not have to have extra office workers to make phone calls to customers requesting collections on accounts. E)All these are reasons to accept credit cards.arrow_forwardAnswer this for me mate. Appreciate it.arrow_forward
- After invoicing a regular customer, PaintPros realizes that it billed the customer for prep work that was supposed to be free per the estimate. How should a credit memo be created for this customer? Select an answer: Apply the credit memo to the overbilled invoice and send the customer a check. Apply the credit memo to any open invoice by selecting Receive Payment. Apply the credit memo to the customer's most recent payment and send the customer a refund.arrow_forwardWhat Would You Say? You are the new bookkeeper for a small business. The bookkeeper whose job you are taking is training you on the businesss manual system. As he journalizes, he writes the account number in the Post. Ref. column because he believes its easier. His thinking is that, when he posts, he wont be bothered writing the account numbers. How would you explain why he should not write the account number in the Post. Ref. column immediately and instead should enter the account number after he has posted the amount to the ledger?arrow_forwardSuppose a co-worker has recorded a cash disbursement twice (Supplies Expense was debited twice for $100 and Cash was credited twice for $100) and wants you to record a correcting entry that will reverse the mistake. The correcting entry will record a debit to the Cash account and a credit to the Supplies account. Would you make this correcting entry? What should you investigate before making a decision about the correcting entry? Are there any other steps you would take to address this issue?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Ethical Decision Making in Management; Author: GreggU;https://www.youtube.com/watch?v=6UrBO-cL27Q;License: Standard Youtube License