38144108
Description
Flashcards by Austin Egg, updated more than 1 year ago
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Created by Austin Egg
over 1 year ago
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| Question | Answer |
| Sales transaction | Navigation bar, new icon, or workspace |
| invoice | The Invoice form is used to record a sales transaction when the product or service is provided to the customer and the customer promises to pay later. These customer promises are called |
| receive payment | The Receive Payment form is used to record a related sales transaction when a customer pays its account with cash, check, credit card, or online payment. When a customer payment is received and recorded, the customer’s accounts receivable balance is reduced by the amount of the customer payment. |
| estimate | The Estimate form is used to record estimated costs of products and services to be provided to a customer in the future. |
| credit memo | A Credit Memo form is used when we need to record a credit, or reduction, in the amount the customer is charged. |
| sales receipt | A Sales Receipt is used to record a sales transaction when the customer pays at the same point in time that the product or service is provided to the customer. (Note that if a customer promises to pay later, after receiving a product or service, then the sales transaction is recorded using the Invoice form, not the Sales Receipt form.) |
| refund receipt | The Refund Receipt form is used when we give the customer a refund. |
| delayed credit | A Delayed Credit form is used to record a pending credit to a customer that will occur at a specified future date. |
| delayed charge | A Delayed Charge form is used to record a pending charge to a customer that will occur at a specified future date. |
| inventory | Products that we sell for which we track quantities, such as dog hammocks that Mookie The Beagle Concierge sells. |
| non-inventory | Products that we sell but we don’t need to track the quantity of the product. An example would be vet supplies that Mookie The Beagle Concierge uses when providing pet care services. |
| service | Services that we provide to customers, such as pet care services that Mookie The Beagle Concierge provides. |
| bundle | A bundle is a collection of products and services that we sell together as a bundle. For example, Mookie The Beagle Concierge might provide a bundle of pet care products and pet care services. |
| direct write-off method | This method records bad debt expense when it becomes apparent that the customer is not going to pay the amount due. If the direct write-off method is used, the customer’s uncollectible account receivable is removed and bad debt expense is recorded at the time a specific customer’s account becomes uncollectible. The direct write-off method is used for tax purposes. |
| allowance method | The allowance method estimates bad debt expense and establishes an allowance or reserve for uncollectible accounts. When using the allowance method, uncollectible accounts expense is estimated in advance of the write-off. The estimate can be calculated as a percentage of sales or as a percentage of accounts receivable. (For example, 2% of credit sales might be estimated to be uncollectible.) This method should be used if uncollectible accounts have a material effect on the company’s financial statements used by investors and creditors. |
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