Credit Sales And Allowance Flashcards
How do you check a customer is reliable
Check credit ratings
Past records with the credit bureau
Have the residential address, bank details and employers details
Credit Sales source document
Invoice
Cash sales double entries
Bank is debited
Sales is credited
Cost of sales is debited
Trading stock is credited at cost price
Credit Sales double entries
Debtors are debited
Sales is credited
Cost of sales is debited
Trading stock is credited.
Difference between debtor’s ledger, debtors list and debtor’s control and debtors allowance
Debtors ledger shows all the credit transactions that happened through out the month having the sales and cos column
Debtors list shows a lost of all debtors and the total amount
Debtors control has the total amount
Debtors allowance shows the transactions that occur when the credit customer gets a refund
When there is a debtors control in the crj, what accounts are involved
Receipts and discount allowed
Receipts
Discount allowed uses receipt as source document and it is recorded in the crj
C/N is issued for
Goods returned
Reciprrs under debtors control is
The amount received after deductions which is also in the analysis of receipts and bank
Cash received from the debtor
Bake increases
Debtor’s control decreases
Individual debtor in the debtor’s ledger decreases
Discount allowed to the debtor
Discount allowed is an expense which increases
Debtor’s control is an asset that decreases
The individual debtor’s account is credited bc it decrease
Calculations of discount allowed
A debtor settles his account less 5% meaning we record the amount received after it has been deducted
Stipulated amount indicates an amount already discounted
Sometimes this is implied and a payment subject to a discount amount has already been discounted
A receipt or eft/bs is issued when a debtor
Pays
When a debtor pays its recorded in the debtor’s ledger and
Cpj
Merchandise is also
Trading stock
