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Mr. Belolan
Journalize and Post transactions to the Cash Receipts Journal
Total, prove and rule the Cash Receipts Journal
Prepare a schedule of Accounts Receivable
Customer A person or business to whom merchandise or services
are sold (vendor = sells products to businesses) Sales Tax
A tax on a sale of merchandise or services Cash Sale
Cash is received for the total amount at the time of sale Credit Card Sale
A credit card is used for the total amount at the time of the sale
PA sales tax rate? 6% Exemptions? 45/50 states have
sales tax Other states’ rates? Why do some states
have a tax and others do not?
Accounts Receivable Asset, debit balance Customer buys now and pays later
Advantages to accepting sales on account? Increased sales Selling in bulk
Disadvantages Will they pay? How to determine quality customer? Credit
scores
Credit Score A numeric score that represents your creditworthiness 300-900 depending on which credit reporting agency
Positive Influences Paying bills on time Using credit cards properly Length of credit history Proper banking
Negative Influences Paying bills late Abusing credit card use Short/no credit history Incurring bank fees and charges
1. Explain an advantage and disadvantage for a business to accept payment on credit.
2. How can you make a positive and negative influence on your credit score?
3. Since PA does not collect sales tax on necessities, how can this be an advantage to attracting businesses into our state?
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