Accounts receivable module 1

Ace Rec modules Incomest atement Accounting forthe sale of our product sales revenue 480000 Financialstatementthat are assured less salesreturn allowance nooo Incomestatement Balance smssalesdiscounts sooo czoooos wet salesrevenue nooooo isales Revenue1 Accountreweave as 316ooo 2cost of aoodssold a Inutory Gross profit in ooo 4 sooo The realization Principle Add other expenses gaooo less other expenses Record Revenue When 170002 NotIncome 1The earningprocess isorwru.myis complete AND General Journi athereisreasonablecertainty as tothe collectivity ofthassettobe receivedcumin cash July3Acc Rec looooo complete whenwefinishourpart sales rev recordaccruedrevenue oooo To record sales of 10 ooo of inutory onace Sales revenue represents revenue earned from July 5 sales returns d allowances woo sellinginvetory Acc Rec woo To record returnof goodsdeliveredto ABC company Twoadjustments tosales Revenue July cash 3am 1salesReturns Allowances sales Discont go Returns customer returnsmerchandisefor creditor refineA area nooo To record collection within the discount parod Allowance customer dissatisfied getreductionfromsalespm2 SalesDiscounts July 29 Cash nooo Accrec nooo offerofa cashdiscount to credit customer fromthe promptpayment orabalance duetorecord collection afterthe discount period ex3110 nko ethree tennet thirty means3 discountisallowed on an payment made within todaysAfter lodaysthere isno discount amiabletheremaining balance isduein 30 days Reasons for offering discounts include A sales speedup collection of cash Minimize the likelihood of bad debts characteristicsofsales peton sales Discounts Bothare contrarevenue accounts resultsinIr torevenueslspecificallysales revenueson the incomestatement Normalbalancedebit