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?