Chapter 6 Flashcards
1
Q
Gross Sales
A
Total sales revenue before deducting sales/ allowances and sales discounts
2
Q
Net Sales
A
Total sales revenue reduced by sales returns and allowances and any other contra-revenue accounts
3
Q
Net Sales Revenue
A
Sales revenue - sales returns and allowances, sales/cash discounts, credit card fees
4
Q
Contra-ASSEST
A
Accumulated depreciation, allowance for doubtful accounts
5
Q
Contra-REVENUES
A
Sales returns, credit card fees, and more
6
Q
Gross Profit Percentage
A
Gross Profit/ Net Sales
7
Q
Uncollectible Accounts
A
Bad debt expense
8
Q
Percentage Sales Method
A
Net credit sales (multiplied by) % bad debt loss rate
= Bad debt expense
