Chapter 6 accounting - Chapter 6 1. Revenue recorded when :...

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Chapter 6 1. Revenue recorded when : goods/ service have been delivered, amount of payment known, collection is reasonably assured. 2. Accept credit card: increase sales, avoid providing credit directly, avoid losses due to bad checks and fraudulent credit card sales, receive payment quicker 3. Page 110 slide 2!! 4. Gross profit percentage = Gross Profit / Net Sales. The higher means the higher net income is. 5. Account receivable a. Trade receivables = amount owed for sales of goods/services b. Nontrade receivables = amount owed for other than business transactions 6. Account Receivable – Allowance for doubtful accounts = Net realizable value of accounts receivable. 7. Bad debt percentage is determined from actual uncollectible accounts from prior years’ credit sales. 8. Net Credit Sales x % Bad debt loss rate = Amount of journal entry (goes to Allowance for Doubtful Accounts) 9. Aging account – the longer the amount has been unpaid, the higher the percentage of % uncollectible. 10.
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Chapter 6 accounting - Chapter 6 1. Revenue recorded when :...

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