discussion requiement
Use the textbook as your main reference and cite it in the article to support your answer. answer two classmate‘s discussion.
- Textbook, Accounting Principles 12th Edition, Weygandt, Jerry J,/ Kimmel, Paul D. / Kieso, Donald E., John Wiley & Sons, Inc. 2015
- We discussed in prior chapters Accounting Information Systems (AIS) and interestingly enough I came across an article about small businesses automating the Accounting for Receivables (https://www.pymnts.com/news/b2b-payments/2021/one-third-of-small-businesses-plan-to-automate-accounts-receivables-by-2025/). In fact there are so many of these types of companies out there who will take care of all of your AR so the small business owner can focus on making money and developing their business opposed to learning accounting. Larger firms like E&Y could do this as well but it's far too pricey. There is a lot of evidence of the benefits to a company but what do you think are the cons? What should businesses be concerned with when creating this level of automation coupled with a little bit of a hands off approach? On another note I do think that companies like this (or roles like this in larger firms) are a great place for Accounting personnel to start their careers, you can learn a lot about the business when you are the one coding things to the AP and AR. Why do you think I would say this? What can you learn from booking AP and AR?
the first classate discussion
An effective means for enterprises to promote sales, expand sales revenue and enhance competitiveness is accounts receivable. However, it often disadvantages enterprises, such as difficulties in capital turnover and bad debt losses. Especially for small and medium-sized enterprises, accounts receivable is reflected in the inability to collect funds and accelerate the cash outflow of the enterprise, which can be described as adding to the misery. Automated accounts receivable specifically may lead to SMEs including corporate turnover tax expense, income tax expense, distribution of dividends in the form of cash will cause corporate capital tension, the management cost of accounts receivable, the intermediary cost in the process of clearing debts, etc. will form the cash outflow of the enterprise.
Enterprises should pay attention to the whole process of collection. Beforehand, they can significantly shorten the settlement cycle through "settlement synergy" and do a reasonable credit investigation of customers based on the transaction information and organizational data. During this matter, enterprises can strengthen the daily management of accounts receivable through credit management (credit limit, credit term, and other early warning mechanisms). Afterward, companies can collect accounts as much as possible through collection management (aging analysis, collection procedures, etc.).
Financial knowledge can help sales support. For example, we have AR/AP analysis that can be used for customer loan control, vendor payment management, etc., to help you get into sales or purchasing. AP is to record accounts payable for purchase and payment operations, and AR is to record accounts receivable for sales and collection operations. Optimize the company's AP process, for example, direct docking to the State Tax for invoice checking, automated two- or three-sheet matching, and the recent promotion of electronic invoices by the State Tax. We can make suggestions with the company to optimize the process, thus increasing the diversity of finance business, reflecting the value of finance work. Of course, this requires opportunities and contacts, but I think this is a good choice.
Question 1 (5 points)
A beverage wholesale outlet sells beverages by the case. On April 13, a customer purchased 18 cases of wine at $42 per case, 20 cases of soda at $29 per case, and 45 cases of water at $17 per case. The customer pays with a Merill credit card. Merill charges a usage fee to the company of 5% of the total sale. What is the sales entry for this purchase?
