Summary
Chapter 5: Sales Revenue and Receivables Summary
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Chapter 5: Sales Revenue and Receivables Summary
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Chapter 5 -Recievable, Revenue Reporting - Sales
Accrual basis:Revenue Recognitized:
Realizable
↑
&
Earned
Revenue Recognition:
Contract
0
Identify
②
Identify performance obligations
③ Determine transaction
price if
·
amount
expected + (discounts, refunds, penalties) added
Allocate
* transection contract
price
to
Precognize
③ when
obligations completed.
Ouchership passed on:
①Shipping Point (Buyer pays transportation cost
responsible for transport
&
Destination (Sell cost
,&ales Discounts & Credit Card discount
Sales Discounts:
Incentivise
quicker payments
->
Reduce
selling price.
-
I
Buyeris Reduction in Costs
Seller:
Cash received
quicker and cost reduced
action
->
Interes
=x
perce
t
When money Unaviable,
↓
seller
may
bornon
pay supplier.
Sales invoice notation
-
2/10, n130
xY
2010 less
'Pay in 30
days
In 10
days.
, If discount (reduce
accepted, to contra account
net SR
gross
SR
to
↳ Sales Discount
entry
$15,000
Payment in 30
days, with 2% discount if
payed
within 10
days.
>
May 15 -> No discount
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