Question

In: Accounting

1. Explain how to memorize an unrecorded bill entry transaction. 2. How a Sales Order different...

1. Explain how to memorize an unrecorded bill entry transaction.

2. How a Sales Order different from a Sales Estimate?

3. Why do some companies require customers to pay a deposit when purchasing on account?

4. Why do some business make purchases with a credit card?

Expert Solution

1.How to memorize an unrecorded bill entry transaction.

As per accounting principle revenue and cost are reported only when it is recognised as per revenue recognisition principle. But what about when sales are made for a year .

For an example a company made contract delivery of $300 IN Upcoming Month.

It will be recorded as asset in Balance sheet instead of P/L statement.

Entries will be :

Unearned Revenue : Debit ( 300)

Fees Earned : Credit (300)

Similiar treatment will be done for unearned expense also.

2. How a Sales Order different from a Sales Estimate?

Sales order is binding contract between buyer and seller. It consists details of purchase quantity , amount and specification related product. Here seller is legally obliged to deliver the said product.

Where sales Estimate is just a forecast of future sales amount by a company. It is done based on historical results majorly.

3. Why do some companies require customers to pay a deposit when purchasing on account?

It means customers require to pay upfront a full amount or percentage of amount. This may be due to

Poor Credit record of customers.
Company deals in high value goods.
Highly customized product - company will not be able to sell other company if the customer do not accept delivery

4. Why do some business make purchases with a credit card?

Credit card provides Interest free credit facility for 30 - 45 days. It helps business save in interest cost.

ekkarill92 answered 2 years ago

1. How is BOQ (Bill of Quantities) related to change order payment in construction projects? 2....

1. How is BOQ (Bill of Quantities) related to change order payment in construction projects? 2. Explain if owner has direct relationship with the subcontractors. What happens if the owner interferes into the work of the subcontractors.

Scenario: 1) You are responsible for the design of a new order entry and sales analysis...

Scenario: 1) You are responsible for the design of a new order entry and sales analysis system for a national chain of auto part stores. 2) Each store has a PC that supports office functions. 3) The company also has regional managers who travel from store to store working with the local managers to promote sales. 4) There are four national offices for the regional managers, who each spend about 1 day a week in their office and 4 on...

What are the different types of Bill of Material? And how is a bill of material...

What are the different types of Bill of Material? And how is a bill of material used?

Q3. Required: 1. Prepare the adjusting journal entry for each transaction at December 31, 2019. 2....

Q3. Required: 1. Prepare the adjusting journal entry for each transaction at December 31, 2019. 2. Indicate for each transaction if it refers to a deferred revenue, a deferred expense, an accrued revenue, or an accrued expense. Journal entries: 1. Cash of $9,000 was collected on June 1, 2019 for services that will be provided evenly over the next year beginning on June 1, 2019. (Deferred service revenue was credited when the transaction occurred on June 1, 2019) 2. Depreciation...

The following are audit procedures from different transaction cycles: 1. Examine sales invoices for evidence of...

The following are audit procedures from different transaction cycles: 1. Examine sales invoices for evidence of internal verification of prices, quantities, and extensions. 2. Select items from the client’s perpetual inventory records and examine the items in the company’s warehouse. 3. Use audit software to foot and cross-foot the cash disbursements journal and trace the balance to the general ledger. 4. Select a sample of entries in the acquisitions journal and trace each one to a related vendor’s invoice to...

For this question, review the journal entry and explain what theprobable transaction would be requiring...

For this question, review the journal entry and explain what the probable transaction would be requiring the entry, and how this entry is impacting the financial statements. Explaining that account ‘ x’ is a debit/credit etc… is not an acceptable answer. Explanation should cover the actual transaction that occurred. Example Question: Utilities Expense 700 Cash 700 An acceptable answer would be: Client paid current month’s utility bill, asset is decreasing, and net worth is decreasing. Question: Cash 100,000 debit Office...

7. Explain how a sales order, a production order, a materials requisition form, and a labor...

7. Explain how a sales order, a production order, a materials requisition form, and a labor time ticket are involved in producing and costing products. 8. Why do companies use predetermined overhead rates rather than actual manufacturing overhead costs to apply overhead to jobs? 9. If a company fully allocates all of its overhead costs to jobs, does this guarantee that a profit will be earned for the period? 10. Provide two reasons why overhead might be under-applied in a...

1. Match each transaction with the type of entry that will be required at April 30,...

1. Match each transaction with the type of entry that will be required at April 30, the company's year-end. A. Deferral Adjusting entry B. Accrual Adjusting entry The company has $8,300 in Prepaid Rent at the beginning of April and uses $3,600 of that for its April rent. The company provides lawn care in April for customers who will be billed and make payment in May. The company owes interest on loans for the month of April and will not...

1.Explain how to audit a transaction on the blockchain? 2.Managerial/tax issues: When agreeing on a price,...

1.Explain how to audit a transaction on the blockchain? 2.Managerial/tax issues: When agreeing on a price, should you use a fiat currency or a digital currency? Why? What are the taxes implications?

How would the following transaction be recorded as a journal entry? Would it even be recorded?...

How would the following transaction be recorded as a journal entry? Would it even be recorded? Accurred expenses are recorded when they occur, but how does the fact that he hasn't written the reimbursement check affect the recording process? "JS had been using a personal cell phone during January for business activities. JS’s accountant had indicated that this was an allowable expense for the business, so JS planned to write a reimbursement cheque (to himself) for $95 but hadn’t gotten...