The accounting concept that states: regardless of when cash is received, revenue should be recorded when merchandise is sold.
Realization of Revenue
A business owes the sales taxes collected to this.
When organizations like schools do not have to pay sales tax, they are said to be this.
When recording cash and credit card sales, this is placed in the account title column.
The source document used when recording cash and credit card sales.
Cash Register Tape
The amount to place in the sales tax payable debit column in the transaction receiving cash on account from Ten Company, $1924.76, covering S176 for $1944.00 ($1,800 plus sales tax, $144), less 1% discount and sales tax, Receipt 297.
A contra account to sales
A deduction on the invoice amount is given for this reason.
To encourage early payment
The original copy of a credit memorandum is given to the customer. The second copy is used as the source document. This concept is applied.
The normal balance of the Sales Returns and Allowances account.