Therefore, revenue is only useful in determining cash flow when considering the company's ability to turnover its inventory and collect its receivables. Gross sales are calculated by adding all sales receipts before discounts, https://www.alibi-by.com/page/2473/ returns, and allowances. For smaller
As I stated before, some accounts will have multiple transactions, so it’s important to have a place number each transaction amount in the debit and credit columns. However, for liabilities and equity accounts, debits always represent a drop in the