wk7dq.docx - Nuhad Alshiblawi Gary Anthony Discussion Questions Chapter Seven 1 How are the net sales for an accounting period determined The balance of

wk7dq.docx - Nuhad Alshiblawi Gary Anthony Discussion...

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Nuhad Alshiblawi Gary Anthony Discussion Questions Chapter Seven 1- How are the net sales for an accounting period determined? The balance of the Sales Returns and Allowances account is subtracted from the Sales account in the Revenue section of the income statement. 2- What purposes does the schedule of accounts receivable serve? To be used to double-check the outstanding balances and generate notices to those customers. It makes it possible to verify that customers are paying their balances on time and that they are within their credit limits 3- How do retail and wholesale businesses differ? Wholesale business sell bulk items, many items at once, as retail sell individual items. 4- Why is a sales return or allowance usually recorded in a special Sales Returns and Allowances account rather than being debited to the Sales account? Because the item is returned due to being ineffective or damaged or is kept for a discounted price. This wouldn’t go into sales account because it is a returned sale, or a discounted sale price.
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5- How is a multicolumn special journal proved at the end of each month?
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