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15 Cards in this Set

  • Front
  • Back
revenue cycle
deals with selling goods and services to customers and collecting the money, split into sales and cash receipts cycle
revenue cycle-departments
billing, accounts receivable, marketing, logistics (warehouse, shipping, receiving), credit and cash receipts, mailroom, internal auditor
revenue cycle-basic steps
obtain customer credit, check credit, enter sales order, ship goods (or back order), bill customer, provide for sr&a if dissatisfied, collect cash, write off bad a/r
revenue cycle-basic journal entries
record credit sales (gross or net), record cash collection, record sales r&a, record write-off
revenue cycle-control objectives
safeguard inventories, safeguard cash received from customers and deposit ASAP, extend credit to those who will probably pay, try to collect A/R, authorize all revenue cycle transactions, accurately record transactions, safeguard cycle acctg records
credit sales-documents
customer purchase order, sales order, bill of lading, invoice, customer stmt
bill of lading
document that specifies details about the shipment of goods from the seller to the buyer, includes name, shipping address, details about shipper, goods, quantity, weight, fees
FOB shipping point
free on board, seller is not paying shipping charges
FOB destination point
free on board, buyer is not paying shipping charges
sales returns-documents
sales return memo, credit memo
cash receipts-documents
remittance advices, cash receipts prelist, checks, deposit slips
remittance advice
document sent by a customer when making a payment to ensure that the correct account is reduced
cash receipts prelist
document that shows the customers who have mailed cash to the corporation and how much
write-offs of a/r-documents
write-off memo-specifies which accoutns to write off as uncollectible
aged accounts receivable report
describes the existing customer accounts in terms of how long they have been unpaid