A special price reduction called an allowance may be

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Unformatted text preview: receivable should be reduced by the amount of returns in the period of sale if the amount of returns is anticipated to be material. 7 Accounting for Sales Revenue Sales (revenue) reported on the Income Statement are net of credit card sales discount, sales discount, and sale returns. Sales Revenue Less: Credit card discounts (a contra-revenue account) Sales discounts (a contra-revenue account) Sales returns and allowances (a contra-revenue account) Net Sales (reported on the income statement) 8 • • • • 9 Passenger sales are recognized as operating revenue when the transportation is provided. The value of unused tickets is included as sales in advance of the carriage on the statement of financial position. -- SIA 10 Amount collected on behalf of third party is not flowing to the entity and does not result in an increase in equity. 11 • • • • • • • • • Nature of why you buy the security determines its classifications 12 • • • • • • • • • • • • • • 13 • • • • • • 14 • • • 15...
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This note was uploaded on 03/16/2014 for the course ACC AB1102 taught by Professor Lam during the Spring '14 term at Nanyang Technological University.

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