BU127 Chapter Notes - Chapter 7: Internal Control, Professional Wrestling Holds, Bank Reconciliation

• School: WLU
• Department: Business
• Course: BU127
• Professor: Chialin Chen

Document Summary

Chapter 7: reporting and interpreting sales revenue, receivables and cash. Accounting for sales revenue: for service businesses, revenues are recorded when they have provided the services to the buyer. Fob (free on board) shipping point: when goods are shipped with fob shipping point, ownership changes hands at shipment and the buyer normally pays for shipping: revenues recognized at shipment, goods in transit belong to the buyer. Fob destination point: ownership changes hands on delivery and the seller normally pays for shipping: revenues recognized at delivery, goods in transit belong to the seller. Credit card sales to consumers: reasons to accept credit cards as payment: If it"s (cid:374)ot (cid:373)ade paid (cid:449)ithi(cid:374) the (cid:1005)(cid:1004) da(cid:455) dis(cid:272)ou(cid:374)t pe(cid:396)iod, the full i(cid:374)(cid:448)oi(cid:272)e a(cid:373)ou(cid:374)t (net: total sales less returns) is due within a maximum of 30 days: read as (cid:862)t(cid:449)o te(cid:374), (cid:374)et thi(cid:396)t(cid:455)(cid:863) Gross profit percentage: gross profit: revenue - cogs, gross profit percentage = gross profit/net sales, higher gross profits imply higher net earnings.