ACC 240 Chapter 6 Notes

ACC 240 Chapter 6 Notes - Accounting Chapter 6 Notes Free...

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Accounting Chapter 6 Notes Free on Board FOB shipping point: title changes hand at shipment FOB destination: title changes hands at delivery Credit Card Discount: is the fee charged by the credit card company for services Credit sales abbreviations 2/10,n/30 - 2 is the discount percentage 10 is the number of days in the discount period n stands for net sales (total sales – returns) 30 Is the number of days that the net sales is due by (in this example if the person pays within the 10 day period they get a 2 percent discount) (otherwise they must pay the full amount within 30 days) Sales returns and allowances: is a reduction of sales revenues for return or allowance for unsatisfactory goods. (exe. Damaged merchandise) Gross profit (Gross Margin) = net sales – cost of goods sold Classifying Receivables Account receivable: (trade receivables, receivables) are open accounts owned to the business by trade customers Notes Receivable: are written promises that require another party to pay the business under specified conditions (amount, time, interest) 1. A specified amount of money, called the principal, at a definite future dat known as the maturity date and 2. A specified amount of interest at one or more future dates
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ACC 240 Chapter 6 Notes - Accounting Chapter 6 Notes Free...

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