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48 Cards in this Set
- Front
- Back
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to record credit sales
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debit A/R
credit sales |
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to record collection of sales
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debit cash
credit A/R |
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to record discount
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debit cash & sales discount
credit A/R |
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to record sale for cash
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debit cash
credit sales debit cgs credit inventory |
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to record sale on credit card with fee
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debit cash & credit card expense
credit sales |
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direct write-off method
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debit bad debts expense
credit A/R |
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to re-instate account previously written off
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debit A/R
credit bad debts expense debit cash credit A/R |
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allowance method
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for estimated bad debts
debit bad debts expense credit allowance for doubtful accounts |
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writing off a bad debt
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debit allowance for doubtful accounts
credit A/R |
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recovering a bad debt
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debit A/R
credit allowance doubt account debit cash credit A/R |
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interest
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principal of the note x annual interest rate x time expressed in years
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to record notes receivable
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debit N/R
credit sales |
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to record receipt of partial payment
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debit cash & N/R
credit A/R |
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recording an honored note
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debit cash
credit N/R & interest revenue |
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recording a dishonored note
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debit A/R
credit interest revenue & notes receivable |
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interest adjustment
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debit interest receivable
credit interest revenue |
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collection of note
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debit cash
credit interest revenue & interest receivable & notes receivable |
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sold accounts receivable
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debit cash & factoring fee expense
credit A/R |
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accounts receivables turnover
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credit sales/average A/R
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sales tax
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debit cash
credit sales & sales tax payable |
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unearned revenue
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debit cash
credit unearned revenue debit unearned revenue credit revenue |
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extend credit period as the person who needs to pay
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debit A/P
credit cash & N/P |
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payment of N/P
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debit N/P & interest expense
credit cash |
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end of period interest adjustment
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debit interest expense
credit interest payable |
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when note matures
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debit interest expense & interest payable & N/P
credit cash |
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employee
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debit salaries expense
credit FICA (ss & medicare), federal income tax, medical insurance, union dues, salaries PAYABLE |
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employer
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debit payroll taxes expense
credit FICA (SS & medicare), SUTA & FUTA PAYABLE |
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to record estimated warranty expense
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debit warranty expense
credit estimated warranty liability |
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to record cost of warranty repairs
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debit estimated warranty liability
credit inventory |
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times interest earned
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income before interest expense and income taxes/interest expense
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sold bonds at par
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debit cash
credit bonds payable |
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interest earned
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debit interest expense
credit cash |
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bond matures
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debit bonds payable
credit cash |
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discount on BP
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debit cash & discount
credit bonds payable |
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interest on bond with discount
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debit interest expense
credit discount & interest payable/cash |
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premium on BP
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debit cash
credit premium and bonds payable |
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interest on bond with premium
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debit interest expense & premium
credit cash |
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debt to equity ratio
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debt to equity = total liabilities/total equity
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table order
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date, face interest, effective interest, amortization, discount/premium, carrying value, face value
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effective interest
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market interest x carrying value
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amort
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effective interest - face interest
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premium/discount
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previous premium/discount - amort
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carrying value
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face + premium
or face - discount |
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premium and discount
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always go towards 0
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carrying value
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always goes towards face value
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interest expense in JE
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effective interest on chart
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premium/discount BP in JE
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amortization on chart
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interest payment/cash in JE
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face interest on chart
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