Recent content by JeffW012

  1. J

    USA Sales Allowance or Marketing Expense

    As a consumer goods product manufacturer, what is the correct way of recording "new store allowances" in our books: do we call these sales allowances, which reduce our sales income, OR do we call these marketing expenses, which allows us to show higher top line sales? I ask which is correct...
  2. J

    USA What to do in this situation with a business owner...

    Get out! Dont walk; Run! But do give him the truth - he is destroying the company and jeopardizing his personal/family assets - when he is caught cheating on taxes, the consequences will be devastating. Who knows, maybe your actions will be the catalyst of change for him- extremely doubtful but...
  3. J

    USA Receiving Short Shipment and Incorrect Invoice

    We use Quickbooks Enterprise, and recently we received delivery of inventory items (qty = 96) against a purchase order, but the bill we received has the wrong quantity (qty = 116). We contacted the vendor and they shipped us the 20 missing items several weeks later; however they sent us an...
  4. J

    USA Pass-Thru Sale to Employees

    Our company purchased some patio items directly from manufacturers to be used at marketing events as special give-away items, but instead of using all of them for marketing, we let employees buy a couple of the items at our cost - no markup at all, just as a straight pass thru to them (less than...
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    USA Bad Debt or Sales Allowance

    Thanks for your input Drmdcpa. I completely agree with you in "At issue is how the original transaction was booked and making sure the books accurately reflect economic reality", and in "... better to book actual net sales... rather than inflate sales and reduce net income by bad debt expense."...
  6. J

    USA Bad Debt or Sales Allowance

    Thanks Fidget. I certainly understand the point between loading and delivery is ripe for error & pilferage, but most of the time we are shipping collect using the customer dictated carrier. The customer's receiving process can also be ripe for error. So when we have multiple check points to...
  7. J

    USA Bad Debt or Sales Allowance

    Thank you for the feedback Steve-LevelUp. I posted the question on this forum because, my thinking was exactly as yours, but I am Not a CPA, and our company's CPA has the opposite opinion - the receivable is not valid since we cannot prove (to the customer's satisfaction at least) that the...
  8. J

    USA Bad Debt or Sales Allowance

    If a customer claims they didn't receive all of the products they ordered (even though we are sure we delivered it), and they deduct the amount from payment remittance, should we (the seller) record the deduction as a bad debt expense or as a sales allowance?
  9. J

    USA Changing Invoice Due Date

    Thank you Kirby & Steve-LevelUP. I suspected it would be a mistake to change the due dates.
  10. J

    USA Changing Invoice Due Date

    We have a few invoices that we sent to one of our customers last year, but they have never paid. Our invoices with this customer are sent via EDI, and the reason that the invoices have not been paid are because they cannot find the invoices in their A/P system; they were either not received or...
  11. J

    USA Collection of Previous Short Paid Invoice

    Our company sells consumer products to retail chain stores. The retailers often "short-pay" our invoices with deductions cited for "vendor non-compliance penalty" or "damaged product". The non-compliance penalties are levied against us whenever a shipment arrives a day early/late, or the...
  12. J

    USA How do I get out! (Of the same type cast)

    If you want to move into another area of accounting such as tax, auditing, etc., I recommend a 3 step process. Step 1 is to determine which area(s) of accounting you would most like to move into, and step 2 is to get an education in that (those) areas (self study, online courses, college...
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    USA Off-Invoice Deductions Taken By Customer

    We manufacture and sell consumer products to several large retail chains which have rigid compliance requirements for submitting invoicing, packing, and shipping; and they take "off-invoice deductions" from payment of our invoices for any "non-compliance" issues (examples: an invoice is...
  14. J

    USA Defective Merchandise Allowance

    As a vendor to retail chain stores we agreed to provide a "defective merchandise allowance" with some of our customers. The customer is allowed to deduct this from payment of their invoices without needing any proof/documentation of merchandise actually being defective. Which is the correct way...