Chapter 6 Reporting and Interpreting Saless Revenu_Notes

Chapter 6 Reporting and Interpreting Saless Revenu_Notes -...

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Chapter 6 – Reporting and Interpreting Sales Revenue, Receivables, and Cash Gross profit – net sales less cost of sales Credit card, sales discount, and bad debt after net sales revenue on the incomes statements and a cash and accounts receivable on the balance sheet Accounting for Sales Revenue FOB – free on board Revenues from goods shipped FOB are recognized at shipment Revenues from goods shipped FOB are recognized at delivery Credit card sales – increases customer traffic, avoids cost of providing credit directly to consumers, lowering losses due to bad checks, avoid losses from fraudulent credit card sales, faster receipt of money Credit card discount – the fee charged by the credit card company for services Sales discount – is a cash discount offered to encourage prompt payment of an account receivable Sales returns and allowances – a reduction of sales revenues for return of or allowances for unsatisfactory goods Measuring and Reporting Receivables
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Chapter 6 Reporting and Interpreting Saless Revenu_Notes -...

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