会计学原理英文课件Chapter-05AccountingforMerchandisingOperations精选

1、ACCOUNTING FOR MERCHANDISING OPERATIONSChapter 5 Service organizations sell time to earn revenue.Examples: Accounting firms, law firms and plumbing servicesNetincomeEqualsExpensesMinusRevenuesSERVICE COMPANIESManufacturerWholesalerRetailerCustomerMerchandising CompaniesMERCHANDISING ACTIVITIESC 1REP

2、ORTING INCOME FOR A MERCHANDISER Merchandising companies sell products to earn revenue. Examples: sporting goods, clothing, and auto parts storesNetIncomeMinusEqualsMinusEqualsCost ofGoods SoldGrossProfitExpensesNetSalesC1OPERATING CYCLE FOR A MERCHANDISER Begins with the purchase of merchandise and

3、 ends with the collection of cash from the sale of merchandise.PurchasesMerchandiseinventoryCredit salesAccountreceivableCashcollectionPurchasesMerchandiseinventoryCashsalesCash SaleCredit SaleC 2INVENTORY SYSTEMS+BeginninginventoryNet cost ofpurchases= Merchandiseavailable for saleEnding inventoryC

4、ost of goodssoldC 3PERPETUAL AND PERIODIC INVENTORY SYSTEMSPerpetual systemscontinually update accounting records for merchandising transactionsPeriodic systemsaccounting records relating to merchandise transactions are updated only at the end of the accounting periodC 3MERCHANDISE PURCHASES On Nove

5、mber 2, Z-Mart purchased $1,200 of merchandise inventory for cash.P1TRADE DISCOUNTSUsed by manufacturers and wholesalers to offer better prices for greater quantities purchased.ExampleZ-Mart offers a 30% tradediscount on orders of 1,000units or more of their popularproduct Racer. Each Racer has a li

6、st price of $5.25.P1Seller Invoice date PurchaserOrder dateCredit terms Freight termsGoodsTotal invoiceP1PURCHASE DISCOUNTS A deduction from the invoice price granted to induce early payment of the amount due.CreditTermsTimeAmountDue Discount PeriodDue: Invoice price minus discountCredit PeriodDue:

7、Full Invoice PriceDate of InvoiceP12/10,n/30Discount PercentNumber of Days Discount Is AvailableOtherwise, Net (or All) Is Due in 30 DaysCreditPeriodPURCHASE DISCOUNTSP1 On November 2nd, Z-Mart purchased $1,200 of merchandise inventory on account, credit terms are 2/10, n/30.PURCHASE DISCOUNTSP1 On

8、November 12th, Z-Mart paid the amount due on the purchase of November 2nd .$1,200 2% = $24 discountPURCHASE DISCOUNTSP1PURCHASE DISCOUNTS After we post these entries, the accounts involved look like this:Merchandise Inventory Accounts Payable 11/2 1,20011/2 1,20011/12 2411/12 1,200Bal. 1,176Bal. 0P1

9、PURCHASE RETURNS AND ALLOWANCESPurchase Return . . . Merchandise returned by the purchaser to the supplier.Purchase Allowance . . . A reduction in the cost of defective merchandise received by a purchaser from a supplier.P1 On November 2nd, Z-Mart purchased $1,200 of merchandise inventory on account

10、, credit terms are 2/10, n/30.PURCHASE RETURNS AND ALLOWANCESP1 On November 5th , Z-Mart returned $300 of defective merchandise to the supplier.PURCHASE RETURNS AND ALLOWANCESP1 On November 12th, Z-Mart paid the amount owed for the purchase of November 2nd.PURCHASE RETURNS AND ALLOWANCESP1TRANSPORTA

11、TION COSTS AND OWNERSHIP TRANSFERFOB shipping point(buyer pays)FOB destination(seller pays)MerchandiseSellerBuyerCarrierP1TRANSPORTATION COSTS On November 2nd , Z-Mart purchased $1,200 of merchandise inventory for cash and also paid $75 transportation costs.P1ACCOUNTING FOR MERCHANDISEP1 Invoice cos

12、t of merchandise purchases235,800$ Less:Less: Purchase discounts(4,200)$ Less: Purchase returns and allowances(1,500)Add: Costs of transportation-in2,300Total cost of merchandise purchased232,400$ ACCOUNTING FOR MERCHANDISE SALESP2Z-MARTComputation of Gross ProfitFor Year Ended December 31, 2009Sale

13、s321,000$ Less:Sales discounts4,300$ Sales returns and allowances2,000 6,300 Net sales314,700 Cost of goods sold230,400 Gross profit84,300$ On November 3rd , Z-Mart sold $2,400 of merchandise on credit. The merchandise has a cost basis to Z-Mart of $1,600. ACCOUNTING FOR MERCHANDISE SALES P2 Z-Mart

14、completes a credit sale for $1,000 on November 12th, the merchandise cost $800. Terms of 2/10, n/60, and the account was paid in full within the discount period.SALES DISCOUNTSP2 Recall Z-Marts sale for $2,400 that had a cost of $1,600. Assume the customer returns part of the merchandise. The return

15、ed items sell for $800 and cost $600.SALES RETURNS AND ALLOWANCESP2 Recall the $800 of merchandise sold by Z-Mart to a customer. The merchandise was defective but the customer agreed to keep it because Z-Mart offers a $100 price reduction.SALES ALLOWANCESP2MERCHANDISING COST FLOW IN THE ACCOUNTING C

16、YCLEBeginning inventoryNet purchasesMerchandise available for saleEnding inventoryCost of goods soldTo Income StatementTo Balance SheetTo Income StatementTo Balance SheetPeriod 1Beginning inventoryNet purchasesMerchandise available for saleEnding inventoryCost of goods soldPeriod 2C 4ADJUSTING ENTRI

17、ES FOR MERCHANDISERS Z-Marts Merchandise Inventory account at the end of 2009 has a balance of $21,250, but a physical count reveals that only $21,000 of inventory exists. Z-Mart suffered a $250 shrinkage.P3CLOSING ENTRIES FOR MERCHANDISERSP3CLOSING ENTRIES FOR MERCHANDISERSP3CLOSING ENTRIES FOR MER

18、CHANDISERSP3CLOSING ENTRIES FOR MERCHANDISERSP3INCOME STATEMENT FORMATSMultiple-StepSingle-StepP4MULTIPLE-STEP INCOME STATEMENTP4SINGLE-STEP INCOME STATEMENTP4CLASSIFIED BALANCE SHEETHighlyLiquidLessLiquidP4A common rule of thumb is the acid-test ratio should have a value of at least 1.0 to conclude a company is unlikel