Accounts receivable arise from credit sales to customers by both retailers and wholesalers. True or false?
Q: How might clustering be used to describe customers who owe money (accounts receivable)
A: Accounts Receivable account shows the list of customers of the business who have amount due to the…
Q: Identify if the two statements are either true or false. 1. The bill of lading is a document…
A: The given statement answer is given in the below step.
Q: -What is the journal entry for recording credit sales? a. Sales Dr. and Accounts Receivable Cr b.…
A: Journal entry is an important and attentive process of accounting cycle through the help of journal…
Q: A credit balance to a client's accounts payable account representing right to receive payment for…
A: Liabilities are of two types current and noncurrent liabilities. Current liabilities are to be…
Q: How are sales to customers using credit cards recorded?
A: Net sales means the amount of revenue earned and cost of goods sold means the cost of goods which…
Q: Sales Returns and Sales Allowances. What are Sales Discounts? What are their respective normal…
A:
Q: Which one of the following statements about trade discount is true? It is recorded in books of…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: What is the nature of (a) a credit memo issued by the seller of merchandise, (b) a debit memo issued…
A: (a) A credit memo issued by the seller of merchandise.A credit memo is a commercial document that is…
Q: What is the distinguishing characteristic between accounts receivable and notes receivable? a. Notes…
A: Accounts Receivable: Amount due for the goods or services used or delivered for the organization but…
Q: a. At the stage of recording a credit sale transaction, please state the potential misstatements 3)…
A: “Since you have asked multiple sub-parts, we will solve the first three sub-parts for you. If you…
Q: A company that provides a service or product to a customer on credit has an __________ from that…
A: A goods or service sold on credit is treated as assets of the business as these are customer…
Q: Assuming HST is not charged, what will a POS Summary result in a credit to: * Bank O A/R O A/P O…
A: Point of sale (POS) is place where a customer made payment for goods or services. Point of sale…
Q: Question The average collection period is the average amount of time that elapses from a credit…
A: Average Collection Period Average collection period is time allowed by the company to its debtors…
Q: Is it a credit memo issued by a vendor or a debit memo issued by a purchaser? What's the difference?
A: The difference will be explained:
Q: what is the average amount of receivables؟ 2-what is the percentage cost of trade credit to…
A: 1) Hence, the average amount of receivables is $70,000.
Q: Accounts receivable is the amount payable by the customer to the company for the goods delivered and…
A: Bad debts are considered to be estimated based on 2.5% of total credit sales. Therefore, the bad…
Q: Explain “Sales Returns and Allowances”. Why does this account have a normal debit balance?
A: Sales Returns and Allowances Sales Return and Allowances is actually a contra revenue account (i.e.…
Q: 1. Which of the following accounts are used when recording the sales entry of a sale on credit?e A.…
A: Sales is a revenue account and all revenues increase when credited. Accounts receivable is an Asset…
Q: plain why it is important for a company to keep track of how much money in discounts is given out?…
A: . Percent of cash discount since 3/15, n/45 is the credit term between the seller and buyer which…
Q: accounts receivable
A: Account receivable refers to the process of payment that the company should receive from the…
Q: Which of the following would not be reported on the financial statement?
A: All transaction that are reported in books of accounts need to be reported in financial statements.…
Q: What is the journal entry for recording credit sales? a. Cash Dr. and Sales Cr b. Sales Dr. and…
A: Journal entry for Recording credit sales: Accounts Receivable [Debit] Sales [ Credit]
Q: By restricting credit, and granting short maturities to speed up accounts receivable turnover, sales…
A: Accounts receivable Turnover ratio: This ratio is calculated to determine how often receivable are…
Q: A credit memo states the amount of a sales allowance or return
A: Credit memo is a document issued by the seller of the goods to the buyer as a source document
Q: Credit selection involves the application of techniques to determine which customers should receive…
A: Credit selection refers to the decision to whether the company should extend the period or the…
Q: ales and elect the correct response: O cost of sales cost of accounts receivable O high accounts…
A: Since there are multiple questions are given, but as per answering guidelines we do only first one.
Q: Which of the following expresses the distinction between accounts receivable and notes receivable?…
A: Notes receivable: which having interest rate, maturity date. both principle and interest to be…
Q: Why do you think businesses extend credit to customers thereby creating accounts receivable?
A: Account receivable means where goods has been sold on credit and amount has not been received.…
Q: * .Revenue of the business includes Credit sales only O Both cash sales and credit sales O Cash…
A:
Q: Making sales using credit cards is a way a company can dispose its receivables. O True O False
A: Credit Card Sales are those sales wherein the amount is received directly by the vendor on the date…
Q: Credit sales are recorded by crediting an account receivable for specific customer. True or false?
A: Lets understand the meaning of credit sales. Credit sales refers to transferring ownership of goods…
Q: How do each of the items in a firm’s credit policy—defined to include the credit period, the…
A: Strong credit policy indicates the effectiveness of credit management. The four components of credit…
Q: What is the primary reason why most businesses want to sell on a credit basis if it is preferable…
A: Businesses can sell on a cash-only basis or collect advance payments from customers to manufacture…
Q: If a customer purchases merchandise on credit and returns the defective merchandise beforepayment,…
A: When customer made purchases on credit from the business, then one side it will generate accounts…
Q: Which of the following is the primary reason why a company sells it receivables to another entity?…
A: Accounts receivable represents the amount that is due to be received by the customer of the company.…
Q: 1) What is the difference between a debit memorandum and a credit memorandum? 2) What is the…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: How to compute net credit sales on a balance sheet
A: solution : How to compute net credit sales on a balance sheet? Net credit sales is the amount of…
Q: Effective credit management involves establishing credit standards for extending credit to…
A: Accounts receivable: When the seller sold the goods to the buyer on a credit basis of the specified…
Q: hen the seller advances the transportation costs and the terms of sale are FOB shipping point, the…
A: Solution: When the seller advances the transportation costs and the terms of sale are FOB shipping…
Q: _____ is the example of Liabilities. Sales Supplies in Hand Account Receivables…
A: The Question has covered the concept of Liabilities. Liability means which have an obligation to…
Q: The journal entry to record the sale of services on credit should include: a debit to Cash and a…
A: There are three golden rules in accounting for recording the transaction : Debit what comes in ,…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- What is the accounts receivable ledger? a. A record of credit customers and their balances b. A record of vendors and their balances c. Part of the sales journal d. Part of the general journal e. Part of the general ledgerWhy is an accounts receivable ledger or an accounts payable ledger necessary for a business with large numbers of credit customers or large numbers of vendors/suppliers?If a customer purchases merchandise on credit and returns the defective merchandise before payment, what accounts would recognize this transaction? A. sales discount, cash B. sales returns and allowances, cash C. accounts receivable, sales discount D. accounts receivable, sales returns and allowances
- Which of the following accounts are used when recording the sales entry of a sale on credit? A. merchandise inventory, cash B. accounts receivable, merchandise inventory C. accounts receivable, sales D. sales, cost of goods soldWhat accounts are used to recognize a retailers purchase from a manufacturer on credit? A. accounts receivable, merchandise inventory B. accounts payable, merchandise inventory C. accounts payable, cash D. sales, accounts receivableCredit sales are recorded by crediting an account receivable for specific customer. True or false?
- Why do you think businesses extend credit to customers thereby creating accounts receivable?Which of the following journal entry is correct for the transactions of goods returned by a customer? Sales returns (debit) Trade payables(credit) Sales returns (debit) Trade receivables(credit) Purchase returns (debit) Trade payables(credit) Purchase returns (debit) Trade receivables(creditWhat accounts are affected when goods are sold on credit? (Check all that apply) Accounts Receivable Cash Revenue Owner's Withdrawals
- "In accounts receivable management, credit analysis is the process of determining the probability that customers will not pay."How are sales to customers using credit cards recorded?If a customer pays with a credit card and the service has been provided, which of the following accounts will be used to record the sales entry for this transaction? Cost of Goods Sold, Merchandise Inventory, Sales Revenue Sales Revenue, Credit Card Expense, Accounts Receivable Accounts Receivable, Merchandise Inventory, Credit Card Expense Cost of Goods Sold, Credit Card Expense, Sales Revenue
