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Discussion: Accounting for a Merchandising Business
Comment on the following:
1. When accounting for sales transactions on account and the collection of cash from sales on account, what factors should be considered to determine whether the correct amount has been received from our customer?
2. When accounting for purchase transactions on account and the payment of cash for purchases on account, what factors should be considered to determine whether the correct amount has been paid to our vendor?
3. What determine the amount of a cash discount?
4. What determines whether the buyer or seller incurs the shipping cost?
Please reply to at least one student's posts.
1. Provide a timely response that contributes additional information that enhances the discussion, offers a relevant example, or provide thoughtful idea.
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