The following information is available to reconcile Sleepy Time Bedding's book balance of cash with its bank statement cash balance as of July 31: What is the appropriate journal entry to record the collection made by the bank?
A)Debit to cash $9,500 credit to accounts receivable $9,500.
B)Credit to accounts receivable $9,500 credit to cash $9,500.
C)Debit to cash $9,452 debit to collection expense $48 credit accounts receivable $9,500.
D)Debit to cash $9,452 debit to collection expense $48 credit notes receivable $9,500.
E)No adjusting entry is necessary.

Question

The following information is available to reconcile Sleepy Time Bedding's book balance of cash with its bank statement cash balance as of July 31:   What is the appropriate journal entry to record the collection made by the bank?
A)Debit to cash $9,500 credit to accounts receivable $9,500. 
B)Credit to accounts receivable $9,500 credit to cash $9,500. 
C)Debit to cash $9,452 debit to collection expense $48 credit accounts receivable $9,500. 
D)Debit to cash $9,452 debit to collection expense $48 credit notes receivable $9,500. 
E)No adjusting entry is necessary.

Quizplus · Accepted Answer

The Answer of The following information is available to reconcile Sleepy Time Bedding's book balance of cash with its bank statement cash balance as of July 31:   What is the appropriate journal entry to record the collection made by the bank?
A)Debit to cash $9,500 credit to accounts receivable $9,500. 
B)Credit to accounts receivable $9,500 credit to cash $9,500. 
C)Debit to cash $9,452 debit to collection expense $48 credit accounts receivable $9,500. 
D)Debit to cash $9,452 debit to collection expense $48 credit notes receivable $9,500. 
E)No adjusting entry is necessary.

The Following Information Is Available to Reconcile Sleepy Time Bedding's