Business Administration 2257 Chapter Notes -Accrual, Operating Expense, Accounts Receivable

• School: Western University
• Department: Business Administration
• Course: Business Administration 2257
• Professor: Prof

Document Summary

: two steps: cash or a/r sales revenue. : some of the revenue goes towards taxes, which is a liability account (a/p to: sales taxes government, freight cost destination) : some of revenue goes towards freight expense (only if it is fob: returns and allowances. : basically an anti sale: cash or a/r, sales revenue returns and allowances (contra revenue) : companies promise to give discount if you pay quickly (i. e. 2/10, n/30: first, you record the sale, and then you make adjusting entry, a/r (50) sales revenue (50) (by the same amount) Cogs (40) merch inventory (40) (by the same amount: if paid within 10 days. A/r (50) cash (49) sales discount (1) (sales discount is contra-revenue: if paid after 10 days. A/r (50) cash (50: on income statement. They are posted as separate items in non-current and current assets section according to date due.