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13 Cards in this Set
- Front
- Back
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formula for credit card discounts?
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sales revenue
Less: Credit card discounts _______________________ Net sales (reported on INC stat |
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formula for sales discount?
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sales revenue
Less:sales discounts _______________________ Net sales (reported on INC stat |
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what does 2/10,n/30 mean?
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2: discount %
10: # of days in discount period n: net (total sales less returns) 30: maximum credit discount |
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formula for sales returns and allowances?
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sales revenue
Less: sales returns and allowances* _______________________ Net sales (reported on INC stat * sales returns= return/purchased x sales |
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formula for net sales?
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sales revenue
Less: Credit card discounts sales discounts sales returns & allowances _______________________ Net sales (reported on INC stat |
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formula for gross profit(gross margin)?
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net sales
<COGS> _________ Gross profit |
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formula for gross profit %?
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GP%= GP/net sales
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when do u record bad debt expense?
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the matching principle requires recording of bad debt exp. in the SAME accounting period in which related sales are made.
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Allowance Method?
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-preferred method
-records an estimate for bad debt exp at yr end to follow matching. - u create an "allowance" acct which serves the purpose of reducing ur AR to their Net Realizable Value( what u expect to collect in cash) |
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Bad Debt Expense?
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-exp. associated w/estimated uncollectable AR
-An adjusting entry at the end of th acct. pd. records Bad debt exp. |
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% of credit sales method
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credit sales
xBad debt loss rate _________________ bad debt exp |
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recievables turnover formula
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net sales/ avg net trade AR= recievables turnover
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bank reconcilation
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ending cash balance per books
+interest paid by bank -NSF +- comp errors _________________ ending corerct cash bal ending cash bal/ bank state +deposits in transit -outstanding checks +-bank errors ______________ ending correct cash balance |
