What type of account is a "sales discount"? a. Liability b. Expense c. Contra-revenue d. Contra-asset Sales: When recording sales data into the accounting system an account must check to see if any sales discounts were given out. A merchandising compan...
Our expense management tool and integration with popular accounting software can also reduce your overheads when expanding into new markets. In fact, our customers that have expanded into new markets have added as much as 3% back into their bottom line by switching to Airwallex. Avoid sneaky fees...
Is accounts payable a debit or credit? Accounts payable is both a debit and a credit. For double-entry bookkeeping, the accounts payable department receives an invoice which gets recorded as a credit in the general ledger and then to the expense account as an offsetting debit. This matching ...
Consolidated freight is a huge cost-saver. By grouping smaller shipments into one load, you can take advantage of full truckload (FTL) pricing. This is great for larger companies that are working with multiple suppliers, are able to fill a truckload themselves, and want to avoid the high cos...
and inform the customer about the additional fees so they can send out the package for delivery. The customer is only learning now that they’re responsible for the import charges. If they decide not to pay, the product is returned at the seller’s expense or thrown away by thecarrier. ...
Every time you have to touch a product in the supply chain, there's a cost. Freight, warehousing, inventory management, labor costs, picking, packing, and shipping fees all add up. Holding costs, dead stock, and damaged or misplaced items also add to the expense. You can only pass on ...
What type of account balance does Retained Earnings carry? a. Debit b. Credit What is the difference between bad debt expense and allowance for doubtful accounts? Would a write-off of uncollectible accounts against allowance for doubtful accounts be disclosed on a cash flow statement? Explain. ...
A good litmus test to determine whether something should be included in COGS is to ask: Would the cost exist if no products were produced? If the answer is no, then the cost is likely included in COGS. Examples of costs generally considered COGS include: ...
Freight and shipping are the costs of shipping finished products to customers or retailers. These are included in the cost of revenue because they represent expenses necessary to distribute goods as part of the sale. Without these expenses, customers and retailers would be unable to receive the pr...
Payment terms may be outlined on the invoice, as well as the information relating to any discounts, early payment details or finance charges assessed for late payments. It also presents the unit cost of an item, total units purchased, freight, handling, shipping, and associated tax charges, ...