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Unformatted text preview: the revenue!
FOB Destination: Title of goods and risk of ownership transfers to the customer once the goods
are delivered to the customer. (Seller normally has paid for shipping, and risk of ownership
stays with the Seller until the customer takes receipt of the goods).
Revenues or Sales: Inflows or increases in assets of a company during a certain period from rendering
services (a service firm), selling a product (a merchandiser) or producing and selling a product (a
manufacturer), or any other activities that are part of the company's central and ongoing operations.
Net Sales: Amount of sales recorded AFTER credit card discounts, sales discounts, and sales returns and
allowances. (All of which are contra revenue accounts)
• Credit Card Discounts: Amount charged by a credit card company for allowing business to
accept credit cards for payment of merchandise. Usually a percentage of the sale price.
a Example: The Company sells merchandise to a customer for $1,000, and allows the
customer to pay us...
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This note was uploaded on 01/22/2014 for the course ACG 2021 taught by Professor Linkovich during the Spring '08 term at University of South Florida - Tampa.
- Spring '08
- Financial Accounting