1. The difference between gross sales and net sakes may include:

a)purchase return

b) sales returns

c) purchase discounts

d) cost of sales

e) bad debt expense

2. The following represent reconciling items within the Dixie Company's bank reconciliation which were discovered upon examil

the bank statement and the related company records:

1. Bank service charges

2. Deposits in transit

3. NSF (Not Sufficient Funds) cheque

4. Outstanding cheques

5. Collection by the bank of a note receivable owed to Dixie Company

6. Payment by the bank of a note payable owed by Dixie Company to a supplier

2.1. which of the six items above should be used in adjusting the balance per books?

a. 1,2,4 and 6

b. 1,2 5 and 6

c. 2, 4 and 5

d. 1,3, 5 and 6

e. 3 and 5

2.2.Which of the 6 above should be used in adjusting the balance per bank statement?

a. 2,3 and 4

b. 2 and 4

c. 1,2,4 and 6

d. 3 and 4

e. 1,3 and 6