Chapter
6
Reporting
and
Interpreting
Sales
Revenue,
Receivables,
and
Cash
PowerPoint Authors:
Susan Coomer Galbreath, Ph.D., CPA
Charles W Caldwell, D.B.A., CMA
Jon A. Booker, Ph.D., CPA, CIA
Cynthia J. Rooney, Ph.D., CPA
McGraw­Hill/Irwin
Copyright © 2014 by The McGraw­Hill Companies, Inc. All rights reserved.
revenues be recorded wh
have been rendered.
Accounting
for
net
Sales
Revenue
The
revenue
realization
principle
requires
Goods
that
have been delivered or servicesen
earned.
There
is
persuasive
evidence
of
an
arrangement
for
customer
payment.
Price
is
fixed
or
determinable.
Collection
is
reasonably
assured.
6-2
Sales
Discounts
to
Businesses
When
customers
purchase
on
open
account,
they
may
be
offered
a
sales
discount
to
encourage
early
payment.
Read
as:
“Two
ten,
net
thirty”
6-3