You own your own outdoor recreation supply store. You are in the process of drafting a standard invoice agreement for customer sales conducted on credit. Create a sample sales invoice with the following minimum information listed:
• Your company information
• Date of sale
• Your customer’s information
• An example product you sell with name, description, price per unit, and number of units sold
• Terms of sale including credit terms and shipping charges, with numerical figures for shipping charges
• Any contract language necessary to further establish the terms of sale (for example, warranties, limitations on shipping, and returns)
Write a reflection about your invoice choice, as it relates to format, terms, contract language, and pricing strategies. Conduct a comparison study to others in your industry (such as REI) to evaluate your choices. Make sure to support your decisions with concrete examples and research.
Want to see the full answer?
Check out a sample textbook solutionChapter 6 Solutions
Principles of Accounting Volume 1
Additional Business Textbook Solutions
Principles of Management
Cost Accounting (15th Edition)
Managerial Accounting (5th Edition)
Horngren's Accounting (11th Edition)
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Construction Accounting And Financial Management (4th Edition)
- A music store sells new instruments. The store also sells used instruments for people who are willing to give the store part of the sales price. The sales of used instruments, called commissions, amount to about one-fourth of total sales. On the firms classified income statement under the Revenue heading are both New Instrument Sales and Sales Commissions. Comment on this practice.arrow_forwardEveryday Supplies Pty Ltd is a single-store retailer that sells a variety of tools, garden supplies,timber, small appliances, and electrical fixtures to the public, although about half of EverydaySupplies’ sales are to construction contractors on account.Retail customers pay for merchandise by cash or credit card at cash registers when merchandise ispurchased. A contractor may purchase merchandise on account, if approved by the credit managerbased only on the manager’s familiarity with the contractor’s reputation. After credit is approved,the sales associate files a prenumbered charge form with the accounts receivable supervisor to setup the receivable.The accounts receivable supervisor independently verifies the pricing and other details on thecharge form by reference to a management - authorised price list, corrects any errors, preparesthe invoice, and supervises a part-time employee who mails the invoice to the contractor. Theaccounts receivable supervisor electronically posts the…arrow_forwardJC Company sells various merchandize ( building materials, stationery, house hold goods, and assortd groceries) to the general public and government workers on both cash and credit basis. You are a student at one of the universities and the sole trader for JC Company approaches you to write a company profile for him.arrow_forward
- Consider the following short case as you respond to the question:SPC Corporation sells computer security software. They maintain their AIS using general ledger software; data files are backed up twice a day. Sales staff can access the customer database, inventory files and general ledger, as well as sales-related documents such as invoices and sales orders. Newly hired sales staff members at SPC receive the company procedures manual which explains the process used to complete the steps in the sales/collection process. To minimize costs, SPC designates up to five sales staff members each month who can do credit checks for all new customers in addition to processing sales. SPC bills its clients monthly and uses the balance forward method of accounting for receivables; all cash receipts from clients are processed using a lockbox procedure. The lockbox firm's fee is 3% of all collections. SPC's accounting department estimates bad debts at the end of each fiscal year; they are normally…arrow_forwardYou have recently been hired as a book-keeper of an SME (Small and medium size) enterprise. Using a case study company in an industry of your own choice: Reflect how the case study company you have selected for purposes of this question the process of developing and maintaining books of original entry particulary with regard to Credit sales as documented in sales invoices.arrow_forwardFood To Go is a local catering service. Conceptually, when should Food To Go recognize revenue from its catering service? (Assume the company reports using ASPE.) a.At the date the customer's payment is received. b.At the date the invoice is mailed to the customer. c.At the date the customer places the order. d.At the date the meals are served.arrow_forward
- XYZ Limited is a clothing wholesaler that sells name-brand clothing to department stores and boutique dress shops. The Figure at the end of this question describes the credit sales procedures of XYZ Limited. In particular, the Figure describes different business activities of four departments including (1) Sales Department, (2) Accounting Department, (3) Warehouse/Shipping, and (4) Mailroom. Further, these activities are elaborated below. The sales department received the customer orders by fax and email. You should be aware that these sales orders are usually unstandardised sales orders. The sales clerk, who works on commission, performs the following tasks: approves the credit sales, calculates commission and discounts, and records the sales in the sales journal from the PC in the sales department. After entering these records, the sales clerk then prepares three documents, including (1) a sales order, (2) a customer invoice, and (3) a packing slip. These documents are…arrow_forwardXYZ Limited is a clothing wholesaler that sells the name-brand clothing to department stores and boutique dress shops. Figure on Page No 4 describes the credit sales procedures of XYZ Limited. In particular, the Figure describes different business activities of four departments, including (1) Sales Department, (2) Accounting Department, (3) Warehouse/Shipping, and (4) Mailroom. Further, these activities are elaborated below. The sales department received the customer orders by fax and email. You should be aware that these sales orders are usually unstandardized sales order (recall our discussion on the revenue cycle during the interactive tutorial for week 4). The salesclerk, who works on commission, performs the following tasks: approves the credit sales, calculates commission and discounts, and records the sales in the sales journal from the PC in the sales department. After entering these records, the salesclerk then prepares three documents, including (1) a sales order, (2) a…arrow_forwardA large auto manufacturer sells large fleets of vehicles to auto rental companies, such as Budget and Hertz. Suppose Budget is negotiating with the auto manufacturer to purchase 1,000 vehicles. Fill in the short paragraph to explain to the auto manufacturer when the company should, and should not, record this sales revenue and the related expense for cost of goods sold. Mention the accounting principles that provide the basis for your explanation. Let's decide how and when the manufacturer should recognize revenue. The manufacturer should record sales revenue when the revenue is (collected ,deferred, earned) by (agreeing to deliver, delivering, never delivering) automobiles to the auto rental companies. The manufacturer should not record any revenue (after, during, prior to) delivery of the vehicles to the auto rental companies because it hasn't (collected, deferred, earned)the revenue yet. The (expense recognition principle, historical cost principle, revenue principle)…arrow_forward
- A large auto manufacturer sells large fleets of vehicles to auto rental companies, such as Budget and Hertz. Suppose Budget is negotiating with the auto manufacturer to purchase 1,000 vehicles. Fill in the short paragraph to explain to the auto manufacturer when the company should, and should not, record this sales revenue and the related expense for cost of goods sold. Mention the accounting principles that provide the basis for your explanation. Let's decide how and when the manufacturer should recognize revenue. The manufacturer should record sales revenue when the revenue is earnedby delivering automobiles to the auto rental companies. The manufacturer should not record any revenue prior to delivery of the vehicles to the auto rental companies because it hasn't earned the revenue yet. The revenue principle governs this decision. Now let's decide how and when the manufacturer should record the cost of the sale. The manufacturer should record the cost of…arrow_forwardSawicki Music Supply is a mail-order business that accepts merchandise orders by telephone and mail. All payments must be prepaid with a major credit card. Once an order is received, either the item is found in inventory and shipped immediately, the item is not found in inventory and is ordered from the manufacturer, or a notice is sent to the customer indicating that the item is no longer stocked. Required Prepare a context, intermediate, and elementary-level data flow diagram for Sawicki Music Supply. For the elementary-level diagram, explode the inventory function.arrow_forwardXYZ Limited is a clothing wholesaler that sells the name-brand clothing to department stores and boutiquedress shops. Figure on Page No 4 describes the credit sales procedures of XYZ Limited. In particular, theFigure describes different business activities of four departments, including (1) Sales Department, (2)Accounting Department, (3) Warehouse/Shipping, and (4) Mailroom. Further, these activities areelaborated below.The sales department received the customer orders by fax and email. You should be aware that thesesales orders are usually unstandardized sales order (recall our discussion on the revenue cycle during theinteractive tutorial for week 4). The sales clerk, who works on commission, performs the following tasks:• approves the credit sales,• calculates commission and discounts, and• records the sales in the sales journal from the PC in the sales department. Page 3 of 9 After entering these records, the sales clerk then prepares three documents, including (1) a sales…arrow_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeCollege Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College PubAccounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,