PSY 30312 Chapter Notes - Chapter 6: Promissory Note, Non-Sufficient Funds, Accounts Receivable
Document Summary
Chapter 6: reporting and interpreting sales revenue, receivables, and cash. Credit card sales to customers: companies accept credit cards for several reasons: To avoid costs of providing credit directly to customers, including recordkeeping and bad debts. To avoid losses due to fraudulent credit card sales. Co(cid:373)pa(cid:374)ies (cid:373)ust follo(cid:449) the (cid:272)redit (cid:272)ard (cid:272)o(cid:373)pa(cid:374)y"s (cid:448)erifi(cid:272)atio(cid:374) pro(cid:272)edure to ensure this. This credit card fee is a contra-account that offsets the revenue account revenue is debited while the credit card fee is credited. Sales discounts to business: some sales are credit sales on open account there is no formal written promissory note or credit card. Credit terms are printed on the sales document and invoice (bill) sent to the customer: when customers purchase on account, they may be offered a sales discount to encourage early payment. Sales discount: often called a cash discount granted to the purchaser to encourage early payment.
