ch6_sp11 - CH 6 Reporting and Interpreting BCOR 2000 Sales...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
BCOR 2000 CH 6 – Reporting and Interpreting Sales Revenue, Receivables, and Cash
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Revenue Principle – from Chapter 3 All four conditions must be met for revenue to be recognized: 1. Delivery has occurred or services rendered 2. Evidence of an arrangement for payment 3. Price is fixed or determinable 4. Collection is reasonably assured
Background image of page 2
Revenue Recognition When does title pass? FOB – Free on board: FOB Shipping – Title and risk of ownership passes at point of shipment Buyer usually pays shipping costs FOB Destination – Title and risk of ownership passes at point of delivery Seller typically pays shipping costs
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Credit Card Sales Why accept credit cards? Increase sales Receive cash quicker than selling on credit Avoid additional costs of selling on credit Shift collection risk to credit card company Downside – ~3% fee to process credit card sales
Background image of page 4
2/10, n/30 2/10, n/30  Sales Discounts When customers purchase on open account, they may be offered a sales discount to encourage early payment. Read as: “Two ten, net thirty” Discount Percentage # of Days in Discount Period Otherwise, the Full Amount Is Due Maximum Days in Credit Period
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/29/2011 for the course BCOR 2000 taught by Professor Brush during the Spring '07 term at Colorado.

Page1 / 18

ch6_sp11 - CH 6 Reporting and Interpreting BCOR 2000 Sales...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online