accg 1/2: Accounts Receivable for a trading business (Chap 14)

[credit terms: 10/10, n/30] → select the correct statements regarding these 3 transactions ^{(1.5 mins)}

Sales Return will reduce GST liability of the business

Sales Returns must be recorded at their ________ in the Accounts Receivable records

Bad debt expense decreases ________ & decreases ________ & decreases ______

Sales Returns must be recorded at their ________ in the Inventory Cards.

all receipts from accounts receivable are to be recorded in both SALES JOURNAL & CASH RECEIPT JOURNAL

Recordings in the AR records can be checked to see that is provides a ____ of the firm's AR by preparing an AR Schedule

^{10 SECS:} Sales Return, Bad Debt Expense and Discount Expense are CASH TRANSACTIONS.

The total in the AR schedule is reported in the Balance Sheet because of its _____

when recording receipts from AR (e.g. $220), how is it being recorded in the columns of the Cash Receipt Journal?

When GST is received altogether with the amount owing by AR, GST is also recorded in the Cash Receipt Journal.

state the accounting equation effect based on this source document _{(you are Uptown Ceramics)}

what source document verifies transactions relating to SALES RETURNS?

Identify the two subsidiary records relating to ACCOUNTS RECEIVABLE

a credit sale increases revenue because ............

which two Qualitative Chracteristics support the idea that bad debts should be disclosed as soon as they are probable?

Accounts Receivable balance is reported in the ...........

what source document verifies a debt that has turned bad?

why does the "receipts from AR" having its own classification column in the CRJ?

Receipts from Accounts Receivable is to be reported as SALES in the Income Statement

when the business receives the amount owing by accounts receivables, the receipts include GST owing by AR.

Credit Sales are recognised as revenue in the period which the sale is made / revenue is earned