January 2025

Sg&a Expense Selling Companies with highly variable cost structures are said to have low operating leverage. A variable cost structure is one in which the SG&A expenses keep pace with sales. Indirect ExpensesIndirect expenses are the general costs incurred for running business operations and management in any enterprise. Every company, no matter how efficient, will incur at least some sort of administrative expense. Our sales commissions, marketing plans, data entry personnel, insurance, property taxes and all the other stuff that goes into

We cover the main types of sales journal entries, how to record them step by step, and special considerations for different business situations. This entry would then be posted to the accounts payable and merchandise inventory accounts both for $2,500. Under the periodic inventory method, the credit would be to Purchase Returns and Allowances. You can see how these journal entries (using the perpetual inventory method) would be recorded in the general ledger as by clicking fooz ball town to save space. Scenario 2: Credit Sale She

This transaction increases both the company’s assets (cash) and its equity (through sales revenue). A sales journal is a specialized accounting record used to document all credit sales of goods and services. It tracks sales transactions petty cash chronologically, ensuring accuracy in revenue recognition and facilitating efficient financial reporting. Sales Discount Journal Terms like “2/10, n/30” mean a 2% discount is applied if payment is made within 10 days, while the full amount is due within 30 days.This account is for deductions

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