Question

State some classes of transactions that comprise the sale and collection cycle.

Answer 1

Answer:

The Sales and Collection Cycle, also known as the Revenue, Receivables, and Receipts (RRR) Cycle, is comprised of various classes of transactions. The sales class and receipts class of transactions are the typical journal entries that debit accounts receivable.

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.