Sales Revenue, Receivables, and Cash Interpretations Notes.pdf

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Department
Accounting
Course
ACCT 1201
Professor
Ganesh Krishnamoorthy
Semester
Spring

Description
Credit Card Sales to Consumersincrease salesavoid credit directly to customersavoid losses due to bad checksavoid losses due to fraudulent credit card salesreceive payment quickercompany must pay credit card company a fee for services providedSales Discountencourages early payment210 n30two ten net thirty2discount percentage10 of days in discount periodnotherwise the full amount is due30maximum days in credit periodprompt receive of cashdecreases chance that customer will run out of funds To determine whether to take the discount calculate interest rate and annual interest rateInterest rate for x daysamount saved amount paidAnnual interest rate365of daysXinterest rate Sales Returns and Allowancesreturns accumulated in this account and deducted from gross sales and cost of goods soldReporting Net Salesrecord credit card discounts sales di
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