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A304: Chapter 6 - Coggle Diagram
A304: Chapter 6
6.1 - Impact of credit card sales, sales discounts, sales returns, and sale of bundled items on net sales
Credit Card Sales to Consumers
Credit Card Discounts
Sales Discounts to Businesses
Payment made after discount period does not affect net sales (full sales is recorded)
Sales Returns and Allowances
Reporing Net Sales
Revenue Recognition for Bundled Goods and Services
6.2 - Effects of uncollectible accounts receivable (bad debt) on financial statements
Estimating Bad Debt
% of Credit Sales Method
compute bad debt expense directly
Aging of AR
compute ending balance of allowance for doubtful accounts and subtract from beginning balance to find bad debt expense
Accounting for Bad Debt
Recording AR and Bad Debt
Writing Off Specific Uncollectible Accounts
Recording Bad Debt Expense Estimates
Revenue Recognition Principle
Recognize revenue when company finishes its obligation/when the company finishes ALL of its responsibilities before losing ownership of a good or finishes a service