会计原理6.pptxVIP

CHAPTER 6ACCOUNTING FOR A MERCHANDISING BUSINESSIFRS Principles of Accounting with Key Words in Korean Soon Suk Yoon ? Hyo Jin KimPowerPoint Presentation by:Soon Suk Yoon, Professor, Chonnam National UniversityHyo Jin Kim, Assistant Professor, Jeonju University2010ACCOUNTING FOR A MERCHANDISING BUSINESSIntroduction to Accounting for Merchandising OperationsObjectivesReview accrual accounting basicsIntroduce terminology for merchandising operations0Objective 1Accounting for Sales of Merchandise.Merchandising OperationsBuy and sell finished goodsCost of Goods Sold – the cost of items shipped to customers - is usually a large expenseInventory – is reported on the Balance Sheet: it is goods held for sale0Merchandising BusinessSales $XXXCost of Merchandise Sold –XXXGross Profit $XXXOperating Expenses –XXXNet Income $XXX0When merchandise is sold, the revenue is recognized as sales.Cash Sales Cashxxx Sales xxxCredit Sales Accounts Receivable xxx Sales xxx0There are two contra sale accounts which must be subtracted from sales to arrive at net sales. They are Sales Returns and Allowances and Sales Discounts.0Sales returns and allowances are granted by the seller to customers for damaged or defective merchandise.Sales Returns and Allowances Sales RAxxx Cash (or A.R.) xxx06-2Sales discounts are granted by the seller to customers for early payment of amounts owed.Sales Discounts Accounts Receivable xxx Sales Discounts xxx Cash xxxExample 6-1Sold $10,000 of merchandise to a customer on terms of 1/10, n/30. Payment was made within 10 days. The amount of the discount is therefore $100($10,000×1%). Thus, the vendor will receive $9,900($10,000－$100). When sold Accounts Receivable10,000 Sales10,000When received Cash9,900 Sales Discounts100 Accounts Receivable10,000Sales DiscountsIn the Income Statement, net sales is reported after adjusting the contra sales accounts.Net Sales (????) = Sales (???) – Sales RA () - Sales Discounts (????) A trade discount(????) represents a reduc