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Financial Terms | |
Sales journal |
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Definition of Sales journalSales journalA journal used to record the transactions that result in a credit to sales.
Related Terms:Cash receipts journalA journal used to record the transactions that result in a debit to cash. Conditional sales contractsSimilar to equipment trust certificates except that the lender is either the Contingent deferred sales charge (CDSC)The formal name for the load of a back-end load fund. Cost of salesThe manufacture or purchase price of goods sold in a period or the cost of providing a service. Days' sales in inventory ratioThe average number of days' worth of sales that is held in inventory. Days' sales outstandingAverage collection period. Domestic International Sales Corporation (DISC)A U.S. corporation that receives a tax incentive for ![]() Foreign Sales Corporation (FSC)A special type of corporation created by the Tax Reform Act of 1984 that Gross salesThe total sales recorded prior to sales discounts and returns. Journal entryThe formal accounting entry used to identify a business transaction. The JournalizingThe process of taking a transaction and putting it into a form that allows it to be recorded in the accounting records. Net salesTotal revenue, less the cost of sales returns, allowances, and discounts. NET SALES (revenue)The amount sold after customers’ returns, sales discounts, and other allowances are taken away from NUMBER OF DAYS SALES IN RECEIVABLES(also called average collection period). The number of days of net sales that are tied up in credit sales (accounts receivable) that haven’t been collected yet. Payroll journalA journal used to record the payroll of a company. percentage of sales modelsPlanning model in which sales forecasts are the driving variables and most other variables are ![]() Price/sales ratio (PS Ratio)Determined by dividing current stock price by revenue per share (adjusted for stock splits). Purchases journalA journal used to record the transactions that result in a credit to accounts payable. RATIO OF NET INCOME TO NET SALESA ratio that shows how much net income (profit) a company made on each dollar of net sales. Here’s the formula: RATIO OF NET SALES TO NET INCOMEA ratio that shows how much a company had to collect in net sales to make a dollar of profit. Figure it this way: return on salesThis ratio equals net income divided by sales revenue. SalesAmounts earned by the company from the sale of merchandise or services; often used interchangeably with the term revenue. Sales allowanceA reduction in a price that is allowed by the seller, due to a problem Sales chargeThe fee charged by a mutual fund when purchasing shares, usually payable as a commission to Sales discountA reduction in the price of a product or service that is offered by the Sales discountsA contra account that offsets revenue. It represents the amount of the discounts for early payment allowed on sales. Sales forecastA key input to a firm's financial planning process. External sales forecasts are based on ![]() Sales mixThe mix of product/services offered by the business, each of which may be aimed at different customers, with each product/service having different prices and costs. sales mixthe relative combination of quantities of sales of the various products that make up the total sales of a company Sales returnsA contra account that offsets revenue. It represents the amount of sales made that were later returned. Sales Revenue Revenue recognized from the sales of products as opposed to the provision ofservices. Sales TaxA tax levied as a percentage of retail sales. Sales-type leaseAn arrangement whereby a firm leases its own equipment, such as IBM leasing its own Sales-type LeaseLease accounting used by a manufacturer who is also a lessor. Up-front gross Sales value at split-offA cost allocation methodology that allocates joint costs to joint sales value at split-off allocationa method of assigning joint cost to joint products that uses the relative sales values of the products at the split-off point as the proration basis; use of this method requires that all joint products Specialized journalsjournals that are used to aid in segregating duties and making the accounting function efficient. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |