Home > Flashcards > Accounting > Finacial Accounting

Details Title: Finacial Accounting Description: ACCU201 Chapter 6 Total Flash Cards: 15 Created: 10/31/2006 20:23:49	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term Net Sales Definition Sales revenue - sales returns and allowances - sales discounts - credit card discounts = net sales Term Journal Entry: store cc sales $3,000 w/ 3% cc service fee Definition debit: A/R - 2910, CC Discounts 90, credit: sales revenue - 3000 Term journal entry: sale 1,000 on store credit, terms 2/10, n/30 Definition debit: A/R-1000, creit: sales revenue-1000 Term journal entry: customer pays that purchase 6 days later in cash Definition debit: cash - 980, sales discount - 20, credit: A/R - 1000 Term journal entry: return for 500 on A/R Definition debit: sales returns and allowances 500, credit: A/R 500 Term gross profit percentage Definition = gross profit / net sales Term journal entry: Gucci estimated bad debt expense for 2006 to be 3,000,000 Definition Dec. 31 - debit: bad debt expense 3000000 credit: ADA 3000000 Term to adjust A/R... to amount business expects to collect Definition A/R - ADA = Net A/R Term journal entry: Gucci's total write offs for 2006 were 1000000 Definition Debit: ADA Credit: A/R Term methods for extimating bad debts Definition percentage of credit sales, or againg of A/R Term percentage of credit sales Definition net credit sales * estimated uncollectable = amount of journal entry Term journal entry: estimated bad debts expense based on percentage of credit card sales of 100$ Definition Dec 31: Debit: Bad Debt Expense - 100 Credit: ADA - 100 Term Aging of A/R Definition A/R * estimated uncollectable = desired balance in ADA (- ADA credit balance + ADA debit balance) = amount of journal entry 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? Definition 100 desired bal - 10 credit bal = 90 adj entry Dec 31: Debit: Bad Debt Expense - 90 Credit: ADA - 90 Term recievables turnover ratio Definition measures how many times avg A/R are recorded and collected in a year Recievables turnover = net sales / avg net trade recievables