Question

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

Answer 1

Answer:

additionally, there are other class's of transactions in the scales. and collection cycle that include sales returns and allowances, debit sales returns, credits accounts receivable, write-offs of collectible receivables ( debit allowance for doubtful accounts, credit accounts receivable), and bad debt expenses......

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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-collectable accounts.
5. Bad debt expense - This takes into account bad debt expense and allowance for accounts that are not collectable.