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Where is this figure taken from.. it seems to include the deduction form sales returns and debts written off.
so it’s taken form credit sales in Receivabelsa account plus cash sales?
but then why is written off debts also listed as an expense if it is already incuded in revenue figure for the year?Hi
Revenue per your income statement is CREDIT.
When you write-off bad-debts in income statement it’s DEBIT (expense)I mean the sales revenue figure on the income statemtent, where does this come from?
I think now it is simply taken form the sales t account.
And does not include the deduction of bad debts.
But is adjusted by deducting sales returns.
Is this correct?Hi, yes it comes from sales.
In f3 there are mostly two types of sales
1) cash sales. Double-entry: dr cash & cr sales
2) credit sales. Double-entry: dr receivables & cr salesYes, sales must deducted of returns. Double-entry: dr sales & cr receivables or cash.
It does not include bad-debt write-off.
Hope im clear
Yes thanks.
So if a sales return t account is used its simply:
dr returns in
cr cash/receivablesAnd the balance of this account is deducted form the Sales balance to get the revenue figure?
Hi, yes
2 ways:
1) a sales return t account is used its simply:
dr returns in
cr cash/receivablesor
2) a sales t account is used its simply:
dr sales in
cr cash/receivables
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