BU127 Lecture Notes - Lecture 11: Accounts Receivable, Financial Statement, Internal Control
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BU127 Full Course Notes
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Bu127 lecture #11: reporting and interpreting sales revenue, receivables, and cash. Credit card sales to consumers companies accept credit cards for several reasons: 5. to increase sales to avoid providing credit directly to customers to avoid losses due to bad cheques to avoid losses due to fraudulent credit card sales to receive payment quicker. When credit card sales are made, the company must pay the credit card company a fee for the service it provides. When companies allow customers to purchase merchandise on an open account, the customer promises to pay the company in the future for the purchase. To take or not take the discount, that is the question. With discount terms of 2/10, n/30, a customer saves on a purchase by paying on the 10th day instead of the 30th day interest rate for 20 days= amount saved amount paid. Sales returns and allowances these situations are recorded in a separate account called sales returns and.
