All transactions that are entered in the general

This preview shows page 1 out of 1 page.

basis. All transactions that are entered in the general journal are posted on a daily basis. Purchases and sales are on credit, except where the transaction specifies that cash has been received or paid. The Adrenaline Hut uses the gross method of recording purchases and sales. Purchases are recorded when The Adrenaline Hut receives the goods and sales are recognised when the goods sold are delivered to the customers. All purchases are received on the same day and all inventory items sold are delivered to customers on the same day as recorded in the transaction list, except for purchase orders and sales orders, which are delivered at a later date. Past experience has shown that offering discounts did not increase the likelihood of accounts receivable being paid promptly. Therefore, settlement discounts are not normally offered to credit customers except in exceptional circumstances. The company has relatively few debtors and, as such, does not currently make any allowances for uncollectible receivables. Any uncollectible receivables are accounted for using the direct write-off method.
Image of page 1
You've reached the end of this preview.
  • Three '09
  • Helen
  • invoice, Sampson, Adrenaline Hut, extreme sports store

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern