Accounting Programs

Hidden asked:


I’m in an MBA accounting program and I’m stuck on two parts of my report:

1)A Fitness club offers credits toward next year’s dues for new member referrals. Management estimates that these credits will amount to approximately 10% of revenues for the up-coming year. Revenues are now in the range of $2.5 million annually.
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I want to set up a contra revenue account for these predictable referral credits.

What double entries would I make to set up the revenue contra account and once a referral happens what does the double entry look like?

Or am I looking at this all wrong?

2) Salespeople at the fitness center are paid every three months based on sales for that quarter. An adjustment is made the next quarter to their commission representing a deduction for non-payment of fees from the previous quarter which they had received commission for.
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So basically right now I pay them in full for all commissions and then next quarter I deduct from each salesperson’s commission whatever commissions they received on memberships that are not honored or paid for by the customer.

In order to improve my working capital I want to set aside some of their commission to cover these fairly predictable non-payments and keep the money in my pockets until we know for sure that a membership is being honored.

How do I account for this in GAAP???

If anyone could help I’d be really grateful, I’ve been stuck on these two for a while and unable to find anything online that helps…

Jeffrey

Brendan asked:


As many of you may know, Bank of America offers a “keep the change.” program. The catch is it only lasts for 3 months after you enroll in it, and i BELIEVE the only second catch is a $250 cap

As you may know it works like this: You buy something for $2.50, they credit your checking account by (-$3.00) and they debit your savings account with (+$.50) and then later in the year they will AGAIN debit you w9th (+$.50) as they match the change for 3 months after you enroll

My question is if i can just go to like a grocery store and keep ringing up individual items, say in the self checkout line and make money this way up to the $250 cap. Suppose i want to buy 5 items at the store, and i just ring up one item at a time so i keep getting seperate purchases. Would this work or does Bank of America also have like a limit on the number of purchases per day with the program? I can’t find anything in their terms for something of such, and it almost sounds too good to be true; is it?
Edit to response #1: Yes, that is true, but *not* prior to three (3) months under their program. Before the 3 month limit, they match 100% of your change- this is the key point. After the 3 months, you are generally correct- they only match 5% of your change. So if you buy something for $1.50 it costs you $2 and they match 5% of $.50 which is only $.025 (2 and a half cents) which is basically negligible.
Apple- Actually, it wouldn’t be a waste of time really if you did it in a method or a similar method to the one that I described. Consider my example again: Many grocery stores like stop and shop have self-checkout lines without a sales clerk. All youde do is ring up one item at a time. Many times i will buy 30 or more items at a grocery store, if the 30 items have an average of 50 cents above or below the nearest dollar, i’d make $15 doing this for the first three months of the program, if there are no daily limits (after 3 months, it’d be only a $.75 cent savings, not worth the effort).

You can really only do this at a store with self-checkouts if this is correct because a cashier who is a person most likely wouldn’t do this for you…

James

shoupart asked:


You know how some credit cards have cashback bonuses for purchases? I want to find a way to do that for my rent… But writing cash advance checks don’t count towards this, and my landlord doesn’t accept credit cards. Does anybody know of a checking account program or billpay system that would give cashback rewards on paying my rent?

Monica

zacneefe asked:


Hello all,

I was curious if anyone knew of a savings program similar to Keep the Change with Bank of America. I’m hoping to find a service that will automatically withdrawal the difference from every transaction one makes so that transactions round up to the next dollar. That change difference is then deposited into the user’s savings account.

I was hoping someone would know of a service NOT affiliated with Bank of America that provides this service for free. Does anyone know of a company that provides this at all?

Thanks,

zacneefe

Jon

NotoFroto asked:


I am interested in washington mutuals new bank account program with “free atm cash withdrawls” where they dont charge a fee to withdraw cash at any atm. But what other fees will I have to pay? Say I take money out of a National City ATM. I know I pay an ATM fee but do I also pay a National City fee. How much are the fees generally?

Christine