Account Names Classification

1 Account Receiveble Asset

2 Sale allowance contra revenue
3 Sale discount contra revenue
4 Sale return contra revenue
5 COGS
6 Trade discount
7 Allowance for Uncollectible Accounts Contra- Asset
8 Accumulated Depreciation Contra- Asset
9
10
11
12
13
14
15
16
Normal Balance
Debit
Debit
Debit
Debit

Credit
Credit
 Chapter 5 Journal Entries

Sale enry on account

Debit Credit
Account Receivable
Service Revenue

Sale enry Cash

Debit Credit
Account Receivable
Cash

Trade discount Entry

$3000 survice provides %20 discount
Debit Credit
Account Receivable 2400($3000X %200)we do not record actuall cost
Service revenue 2400

Sales Return
Debit Credit
Sales Return
Account Receivable

Sales Allowance
Debit Credit
Sales Allowance
Account Receivable

Sales Discount
Debit Credit
Sales Discount
Account Receivable

Customer Owes $2000terns 2/10 n/30

Dr Cr
Cash
Sales discount
Account Receivable

No discount Sales
Dr Cr
Cash
Account Receivable
 Estimating Uncollectible
Dr Cr
Bad Debt expense
Allowance for uncollectibles

Writing off
Dr Cr
Allowance for Uncollcetible
Account Recivable

Reinstatement of an account
Dr Cr
Account Receivavle
Allowance for Uncollectibles

Make Payment
Dr Cr
Cash
Account Receivable

Receivable Turnover Ratio

Net credit Sales

Account Turnover Ratio
Avarage account Receivables

Avarage Collection Period

365 Days
Avavrage collection Period
Receivable Turover Ration
Net Sales
Net Revenue