Terms And The Future Of Discounts And Sales Accounts

Lastly, I learned about purchase discounts or sales discounts. At times there are business that offer discounts to attract customers to buy encouraging fast payment. Depending on the company there will be different sets of discounts and terms depending on the product. The term will allow for the customer to understand how much they are entitled to discount and how much money they will save for the product. Terms are simply the instructions to the discounts. For example, on an invoice you will see if the discount was at net for full price, the percentage of discount that was received, as well as the number of days that the bill must be paid. In regards to the future of merchandise operations, the biggest factor I see that would influence

Perez sold a produce to the customer using the perpetual inventory system. If Dr. Perez’s company sold $1000 of goods for $2000 on May 1st on credit and the customer was given 6 months to pay according to the terms. The customer decides to pay early and pays $500 on June 1st and the remaining $500 on July 1st. Because a good was given away, sales were earned, which increases equity. The company got a legal right to collect from the customer on account receivable. There is an increase in assets because of account receivables, as well as equity because of sales by $500 on June 1st. Because of the perpetual inventory system there must be two entry’s. A sales entry on the sales account at the selling price as well as a cost entry to cost of goods sold for the cost of inventory. The journal must recognize that inventory has been sold. In addition to that entry, cost of good sold must be decreased and recognized in equity. When the customer pays on account, this means that the customer did not pay the full amount

The first is what we just touched on are real and tangible assets, such as buildings and the equipment that supports the building. Although mostly every company will have tangible assets, not every company will have the following. Intangible asset are assets that you cannot physically touch. Examples are patents and copyrights what companies used to make their property their own legally. Lastly, natural resources are the final classification of plant assets. An example is oil or coal. If we look at the future of how this will affect us in the future, we can expect patents or copyrights/trademarks taking a blow by the legal protection, which is granted by each country. I can see the legalities become a little looser due to the creative ways that company’s are coming up with similar names. For example, new company’s who launch businesses or product pick names, they pick generic names and are not protected by trademark. Having a strong name that is implicitly and imaginatively conveying your business will allow you to defend them in court with competitors with similar