ACCOUNTINGFORMERCHANDISINGOPERATIONS幻灯片.pptVIP

Chapter 05; Service organizations sell time to earn revenue. Examples: Accounting firms, law firms and plumbing services ;;REPORTING INCOME FOR A MERCHANDISER;OPERATING CYCLE FOR A MERCHANDISER;INVENTORY SYSTEMS;Perpetual systems continually update accounting records for merchandising transactions ;MERCHANDISE PURCHASES;TRADE DISCOUNTS;P1; On November 12, Z-Mart paid the amount due on the purchase of November 2.;PURCHASE DISCOUNTS;PURCHASE RETURNS AND ALLOWANCES; On November 15, Z-Mart (buyer) issues a $300 debit memorandum for an allowance from Trex for defective merchandise.; Z-Mart purchases $1,000 of merchandise on June 1 with terms 2/10, n/60. Two days later, Z-Mart returns $100 of goods before paying the invoice. When Z-Mart later pays on June 11, it takes the 2% discount only on the $900 remaining balance.;TRANSPORTATION COSTS AND OWNERSHIP TRANSFER;TRANSPORTATION COSTS;ACCOUNTING FOR MERCHANDISE;ACCOUNTING FOR MERCHANDISE SALES;SALES OF MERCHANDISE ; On November 3, Z-Mart sold $2,400 of merchandise on credit. The merchandise has a cost basis to Z-Mart of $1,600. ;SALES DISCOUNTS;Z-Mart completes a $1,000 credit sale with terms of 2/10, n/60.;SALES RETURNS AND ALLOWANCES; Recall Z-Mart’s sale for $2,400 that had a cost of $1,600. Assume the customer returns part of the merchandise. The returned items sell for $800 and cost $600.; Assume that $800 of the merchandise Z-Mart sold on November 3 is defective but the buyer decides to keep it because Z-Mart offers a $100 price reduction. ;MERCHANDISING COST FLOW IN THE ACCOUNTING CYCLE;ADJUSTING ENTRIES FOR MERCHANDISERS;CLOSING ENTRIES FOR MERCHANDISERS;P4;SINGLE-STEP INCOME STATEMENT;CLASSIFIED BALANCE SHEET;GLOBAL VIEW;A common rule of thumb is the acid-test ratio should have a value of at least 1.0 to conclude a company is unlikely to face liquidity problems in the near future.;Percentage of dollar sales available to cover expenses and provide a profit.;JCPENNEY;APPENDIX 5A: PERIODIC INVENTORY SYS