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11 Cards in this Set
- Front
- Back
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sales of our product affects which statements?
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income statement (sales rev and COGS) and balance sheet ( AR and inventory)
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returns and discounts classified as...
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contra revenue
normal balance = debit decreases revenues |
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bad debt expense recorded when?
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same year as the credit sale is made
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bad debt expense
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expense account
on income statement reduces net income |
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allowance for doubtful accounts
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decrease in assets
contra asset account normal balance = credit on balance sheet directly under AR as decrease |
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NRV=....
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AR - Allowance
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AR Turnover =
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net sales rev / avg AR
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Avg AR =
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AR at jan 1 + AR at Dec 31 / 2
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AR turnover is better when
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higher
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Avg collection period
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365 / AR turnover ratio
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avg collection period is better when?
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lower
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