Question

State some classes of transaction that comrise the sale and collection cycle

Answer 1

Answer:

Additionally, there are other classes of transactions in the sales and collection cycle that include sales returns and allowances, debit sales returns, credit accounts receivable, write-offs of uncollectible receivables (debit allowance for doubtful accounts, credit accounts receivable), and bad debt expenses (debit ...

Explanation:

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Answer 2

The sales and collections cycle refers to the various accounts receivable, revenue and financial receivables to be collected.

Explanation:

The sales and collections cycle refers to the various accounts receivable, revenue and financial receivables to be collected.

• Various transactions including sales and collection cycles. Include -

1. Sales -This affects sales and accounts receivable.
2. Cash Receipts - They consider the total cash and accounts receivable.
3. Sales Returns and Allowances – This takes into account sales returns and allowances and accounts receivable.
4. Charge-off - they take into account allowance for accounts receivable and non-collectible accounts
5. Bad debt expense - This takes into account bad debt expense and allowance for accounts that are not collectible.