Gummy Co. purchased merchandise on June 10 at a $9,000 Invoice price with terms of 2/10,n/30 and paid for the merchandise on June 30

Gummy Co. purchased merchandise on June 10 at a $9,000 Invoice price with terms of 2/10,n/30 and
paid for the merchandise on June 30. Illustrate the required entries to record and pay for this purchase
under the gross method and net methods by matching the action on the left with the method on the right
(Assume a perpetual Inventory system Is used.)

Merchandise Inventory would be debited for      Gross method
$9,000 on June 10.
Discounts Lost would be debited for $180 on      Net method
June 30.
Cash would be credited for $9,000 on June 30     Both methods




Given the bank reconciliation below, show what the effect on the Cash balance in the general ledger will
be ""selecting all of the correct answers below.
'XYZ Co.
Bank Reconciliation
August 30, 2012
Bank balance $2,005 Book Balance $2,25(
Add: Deposit in transit 300 Add: Interest ea med 50
Less: Outstanding checks .:LB5 Less: NSF check 1BQ
Adjusted bank balance $2,12C Adjusted book balance $2,12C


Cash will have an adjusted balance of $2,120 after posting the required adjustments.
Cash will have an adjusted balance of $1,250 after posting the required adjustments.
Cash will be credited by $185 for the outstanding checks.
Cash will be credited by $180 for the NSF check.
Cash will be debited for the $300 deposit in transit.
Cash will be debited by $50 for the interest earned.