Term
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Definition
| Sales revenue - sales returns and allowances - sales discounts - credit card discounts = net sales |
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Term
| Journal Entry: store cc sales $3,000 w/ 3% cc service fee |
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Definition
| debit: A/R - 2910, CC Discounts 90, credit: sales revenue - 3000 |
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Term
| journal entry: sale 1,000 on store credit, terms 2/10, n/30 |
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Definition
debit: A/R-1000,
creit: sales revenue-1000 |
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Term
| journal entry: customer pays that purchase 6 days later in cash |
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Definition
debit: cash - 980, sales discount - 20,
credit: A/R - 1000 |
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Term
| journal entry: return for 500 on A/R |
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Definition
debit: sales returns and allowances 500,
credit: A/R 500 |
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Term
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Definition
| = gross profit / net sales |
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Term
journal entry:
Gucci estimated bad debt expense for 2006 to be 3,000,000 |
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Definition
Dec. 31 -
debit: bad debt expense 3000000
credit: ADA 3000000 |
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Term
| to adjust A/R... to amount business expects to collect |
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Definition
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Term
journal entry:
Gucci's total write offs for 2006 were 1000000 |
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Definition
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Term
| methods for extimating bad debts |
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Definition
| percentage of credit sales, or againg of A/R |
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Term
| percentage of credit sales |
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Definition
| net credit sales * estimated uncollectable = amount of journal entry |
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Term
| journal entry: estimated bad debts expense based on percentage of credit card sales of 100$ |
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Definition
Dec 31:
Debit: Bad Debt Expense - 100
Credit: ADA - 100 |
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Term
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Definition
A/R * estimated uncollectable = desired balance in ADA
(- ADA credit balance + ADA debit balance) = amount of journal entry |
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Term
| so if your estimate for uncollectible accounts is 100, and there is already a 10 credit balance in your ADA, then what is your adjusting entry? |
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Definition
100 desired bal - 10 credit bal = 90 adj entry
Dec 31:
Debit: Bad Debt Expense - 90
Credit: ADA - 90 |
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Term
| recievables turnover ratio |
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Definition
measures how many times avg A/R are recorded and collected in a year
Recievables turnover = net sales / avg net trade recievables |
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