Chapter 4 Recording Credit Sales

Question 1

What are the six stages of sales process?

Answer 1

1. Quotation
2. Customer order
3. Goods despatched
4. Payment required
5. Goods returned
6. Payment

Question 2

What are the financial statements of a business?

Answer 2

The statements of profit or loss and the statement of financial position

Question 3

What do the financial statements contain?

Answer 3

Assets
Liabilities
Income
Expenses

Question 4

Key things to check when preparing an invoice

Answer 4

the correct goods
the correct customer
the correct amount

Question 5

Key checks when preparing a credit note

Answer 5

correct goods, correct customer, and is for the correct amount.

details of goods that have been returned.

Question 6

Key checks when receiving receipts from customers

Answer 6

is it for the correct amount?

Is any prompt payment discount deducted valid and correctly calculated?

Question 7

What happens if no remittance advice is received with the payment?

Answer 7

The customer sales ledger account must be examined to determine which invoices are being paid.

Question 8

What should you do if any discrepancies arise with payment from a customer?

Answer 8

The payment should still be recorded.

Report discrepancy to the appropriate person within thee organisation