ACG 2021 Lecture Notes - Lecture 6: Accounts Receivable, Market Liquidity, Apple Inc.
Document Summary
10: t/f: sales returns and sales allowances are considered expense accounts and not contra revenue accounts. False: t/f: accounts receivable is considered to be a more liquid asset than inventory. Chapter 5: sales and receivables: gross sales vs net sales, sales returns, sales allowances, sales discounts, valuation of accounts receivable, agings, uncollectible accounts (write-offs, notes receivable. 30 days: steps to record/calculate sales discounts. 1 when payment is received for a previous credit sale, calculate if a sales dis(cid:272)ou(cid:374)t is due (cid:271)ased o(cid:374) (cid:858)te(cid:396)(cid:373)s(cid:859) p(cid:396)o(cid:448)ided & (cid:272)al(cid:272)ulate dis(cid:272)ou(cid:374)t. Receivables accounts and notes: second most liquid asset after cash, acquired mainly by, selling goods & services (accounts receivable, lending money via formal contracts (notes receivable, loans to officers/employees. Accounts receivable: amounts collectible from customers, balance in gl, control account, summarizes total amount due from all customers, should be equal to total of all subsidiary ledgers, subsidiary ledger, separate account for each customer.
