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10 Cards in this Set
- Front
- Back
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Companies SELL a product they debit____ and credit ____ |
Debit: Accounts Receivable Credit: Service Revenue |
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When customer pays company debits _____ and credit ____ |
Debit: Cash Credit: Accounts Receivable |
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Companies BUY a product they debit____ and credit ____ |
Debit: some type of expense Credit: accounts payable |
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Other Receivables |
Notes Receivables Interest Receivables |
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Contra Revenue Accounts are... |
Sales discounts Returns Allowances |
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Trade Discounts |
Applied to selling price Not directly recorded; not an account |
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Sales Returns and Allowances |
Happen for full find or partial allowance *contra revenue account not an expense Subtract from total revenues or sales |
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Sales Discounts |
Applies if customer makes payment within a specified period of time *incentive to pay more quickly Contra Revenue Account Subtract from total revenues or sales |
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2/10 means... n/30 means... |
2% discount if paid in 10 days Net must be paid by 30 days |
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Where are accounts receivables found?? |
Balance Sheet |
