会计学：企业决策的基础（管理会计分册）（原书第19版）课件 Chap006-Merchandising Activities

Chapter6MerchandisingActivitiesIntroduction:ExampleofaMerchandiserLowe’sretailstoresaregoodexamplesofmerchandisingoutlets.Lowe’sisthesecondlargesthomeimprovementretailerintheworld.Thecompanyoperates2,152homeimprovementandhardwarestores.Lowe’soffersacompletelineofproductsformaintenance,repair,remodeling,anddecorating,withatypicalstorestockingapproximately36,000items.Introduction:ExampleofaMerchandiser(cont.)Lowe’scarriesawideselectionofnationalname-brandmerchandiseincludingproductsfromWhirlpool,GE,LG,Samsung,Stainmaster,Sylvania,andOwensCorning,amongmanyothers.

Lowe’salsocarriesawidevarietyofprivatebrandmerchandise.Byofferingbothnamebrandandprivatebrandproduct,Lowe’s

hastheabilitytooffervariousquality-pricecombinations.Introduction:ExampleofaMerchandiser(concluded)Lowe’sfinancialstatementsaresimilartothoseoftheserviceorganizationsillustratedinpreviouschapters.Theydiffer,however,becauseLowe’ssellsmerchandisetoitscustomers.Companiesthatsellmerchandisemustreportinformationaboutinventorycostsintheirfinancialstatements.OperatingCycleTheoperatingcyclereferstotheseriesoftransactionsthroughwhichabusinessgeneratesitsrevenueanditscashreceiptsfromcustomers.Theoperatingcycleconsistsofthreebasictransactions:PurchasesofmerchandiseSalesofmerchandiseCollectionofreceivablesOperatingCycle:DiagramManufacturingActivitiesManufacturingcompaniesarethosewhobeginbymanufactureratherthanpurchasetheirinventories.Theoperatingcycleofamanufacturingcompanyislongerandmorecomplexthanthatofamerchandisingcompany.Examplesofmanufacturersinclude:GeneralMotorsIBMBoeingAircraftManufacturingActivities(cont.)Theoperatingcycleofamanufacturingcompanyislongerandmorecomplexthanthatofamerchandisingcompany,becausethefirsttransaction—purchasingmerchandise—isreplacedbythemanyactivitiesinvolvedinmanufacturingthemerchandise.KEYPOINTOurexamplesandillustrationsinthischapterarelimitedtocompaniesthatpurchasetheirinventoryinaready-to-sellcondition.Thebasicconcepts,however,alsoapplytomanufacturers.RetailersAretailerisabusinessthatsellsmerchandisedirectlytothepublic.Retailersmayincludelargenationalchainssuchas:Lowe’sTheGapWalmartRetailersmayalsoincludesmallbusinessessuchas:GasstationsConveniencestoresWholesalersWholesalersbuylargequantitiesofmerchandisefromseveraldifferentmanufacturersandthenresellthismerchandisetomanydifferentretailers.Becausewholesalersdonotselldirectlytothepublic,eventhelargestwholesalersarenotwellknowntomostconsumers.KEYPOINTTheconceptsdiscussedintheremainderofthischapterapplyequallytoretailersandtowholesalers.IncomeStatementComparison:ServiceCompanyvs.MerchandisingCompanyMerchandisingIncomeStatement:ExampleIncomeStatementTerminologyCostofgoodssold:representsthecosttoacquirethemerchandisesold.Grossprofit=Sales–CostofgoodssoldOperatingexpensesincludeexpensesotherthancostofgoodssoldincludingbutnotlimitedtowagesexpense,advertisingexpense,insurance,anddepreciation.Netincomeresultsonlyifacompany’sgrossprofitexceedsthesumofitsotherexpensesControlAccountsandSubsidiaryLedgersControlaccounts,alsocalledgeneralledgeraccounts,areusedtopreparefinancialstatements.Subsidiaryledgerscontaininformationaboutspecificaccountsinthecompany’sgeneralledgersuchastheaccountsreceivablesubsidiaryledgerortheaccountspayablesubsidiaryledger.KEYPOINTAlthoughgeneralledgeraccountsprovideausefuloverviewofacompany’sfinancialactivities,theydonotprovidethedetailedinformationneededtoeffectivelymanagemostbusinessenterprises.SubsidiaryLedgersMerchandisingcompaniesalwayshaveaccountsreceivableandaccountspayablesubsidiaryledgers.Ifthereare20customers,thereare20individualrecordsintheaccountsreceivablesubsidiaryledgerandthetotalofthe20recordsadduptotheAccountsReceivablebalanceinthegeneralledger.KEYPOINTThroughouttheremainderofthischapterwerecordvariousmerchandisetransactionsdirectlyinthegeneralledgercontrolaccounts.Toavoidexcessivedetail,weassumethatthespecificaccountinformationunderlyingthesetransactionshasbeenpostedtothenecessarysubsidiaryaccounts.InventorySubsidiaryLedgerManymerchandisingcompaniesalsomaintainaninventorysubsidiaryledgerbycreatingaseparateinventoryaccountforeachitemthattheysell.Theinventorysubsidiaryledgerforalargedepartmentstorecontainsthousandsofaccounts.Eachoftheseaccountstracksinformationforonetypeofproduct,showingthequantitiesandcostsofallunitspurchased,sold,andcurrentlyinstock.InventoryCostFlowWheninventoryisinitiallypurchased,itisrecordedonthebalancesheetasanasset.Whentheinventoryissold,itismovedtotheincomestatementasacostofgoodssold(anexpense).KEYPOINTThisprocessfacilitatesthematchingprincipleasthecostofthemerchandiseismatchedagainstthesalesrevenueintheaccountingperiodinwhichthesaleoccurs.TheFlowofInventoryCostsTwoApproachesforMerchandiseInventoriesPerpetualinventorysystemDuetoadvancesintechnologyincludingcomputerizedaccountingsystems,thisapproachhasbecomeeasyandcost-effective.Mostcompaniesusetheperpetualsystem.PeriodicinventorysystemPrimarilyusedbyverysmallbusinesseswithmanualaccountingsystems.PerpetualInventorySystemTransactionsarerecordedimmediatelyastheyoccur;recordsarekept“perpetually”up-to-date.Whenmerchandiseissold,twojournalentriesarenecessary:Recognizerevenueearnedbasedonthesalespriceofthemerchandise.Recognizethecostofgoodssoldandreducetheinventoryaccount.Purchased10Regent21-inchcomputermonitorsonaccountfromOkawaWholesaleCo.Themonitorscost$600each,foratotalof$6,000;paymentisduein30days.IllustrationofMerchandiseTransactionsforComputerCityOnSeptember7,ComputerCitysoldtwocomputermonitorsfor$1,000perunitonaccounttoRJTravelAgency.Illustration:Sept.7OnOctober1,ComputerCitypaidOkawaWholesaleCo.$6,000forthe

September1purchase.Illustration:Oct.1OnOctober7,ComputerCitycollectedthe$2,000accountreceivablefromRJTravelAgencyfortheirpurchaseonSeptember7.Illustration:Oct.7TakingaPhysicalInventoryAphysicalinventoryistakenonceayear,usuallynearyear-end,toensureaccuracyofperpetualinventoryrecords.Overtime,inventoryshrinkage(unrecordeddecreasesininventoryresultingfrombreakage,spoilage,theft,etc.)mayoccur.Theinventorycontrolaccountandsubsidiaryledgerareadjustedtothequantitiesanddollaramountsindicatedbythephysicalinventory.TakingaPhysicalInventory(cont.)Ifaphysicalcountindicatessomemerchandiseismissing,thecompanymakesanentrytoIncreasecostofgoodssoldwithadebit.Reduceinventorywithacredit.ReasonableamountsofinventoryshrinkageareviewedasanormalcostofdoingbusinessandaredebitedtotheCostofGoodsSoldaccountClosingEntriesInaPerpetualSystemTheclosingentriesforamerchandiserusingtheperpetualinventorysystemwillmirrortheclosingentriesforaservice-typebusiness.Closesalesrevenuetoincomesummary.Closeexpensestoincomesummary.Closeincomesummarytoretainedearnings.Closedividendstoretainedearnings.YourTurn:YouastheInventoryManagerPeriodicInventorySystemTheperiodicinventorysystemAlternativetoaperpetualinventorysystem.Noeffortismadetokeepup-to-daterecordsofeithertheinventoryorthecostofgoodssold.Instead,theseamountsaredeterminedonlyperiodically—usuallyattheendofeachyear.ProceduresUnderthePeriodicSystemWhenmerchandiseispurchased,itscostisdebitedtoanaccountentitledPurchases,ratherthantotheInventoryaccount.Whenmerchandiseissold,anentryismadetorecognizethesalesrevenue,butnoentryismadetorecordthecostofgoodssoldortoreducethebalanceoftheInventoryaccount.Astheinventoryrecordsarenotupdatedastransactionsoccur,thereisnoinventorysubsidiaryledger.FoundationofthePeriodicSystemKEYPOINTThefoundationoftheperiodicinventorysystemisthetakingofacompletephysicalinventoryatyear-end.Thisphysicalcountdeterminestheamountofinventoryappearinginthebalancesheet.Thecostofgoodssoldfortheentireyearthenisdeterminedbyashortcomputation.OnJanuary6,WagnerOfficeProductspurchasedmerchandiseamountingto$2,000onaccountfromInkJetSolutions.Illustration:PeriodicInventorySystemComputingCostofGoodsSoldTheaccountingrecordsofWagnerOfficeProductsshowthefollowing:Inventory,Jan.1 $14,000Purchases(duringyear)130,000Inventory,Dec.31 12,000CreatingaCOGSAccountfortheClosingProcessCompletingtheClosingProcessAfteradjustingtheCostsofGoodsSoldandInventoryaccounts,thecompanycanmakeclosingentriesinthesamemannerasacompanyusingtheperpetualsystem.Closesalesrevenueaccounts.Closeexpenseaccounts(includingCOGS).Closeincomesummary.Closedividends.InternationalCaseInPointSelectinganInventorySystemYourTurn:YouasaBuyerCreditTermsandCashDiscountsManufacturersandwholesalersnormallyselltheirproductsonaccountandallowcustomers30or60daystopay.Frequently,sellersoffercustomersadiscounttoencourageearlierpayment.Oneofthemostcommontermsofferedis“2/10,n/30”readas“2,10,net30”Fullpaymentisduein30daysBut,thebuyercantakea2%discountifpaymentismadewithin10daysCreditTermsandCashDiscounts(cont.)Discountperiodistheperiodduringwhichthediscountisavailable.Thediscountissometimescalledacashdiscount.Buyersrefertothisdiscountasapurchasediscountwhilesellersrefertothemassalesdiscounts.Manywell-managedcompaniesrecordpurchasesatnetcost—theinvoicepricelessthediscount—becausethisistheamountthecompanyexpectstopay.RecordingPurchasesatNetCostOnNovember3,ComputerCitypurchases100spreadsheetprogramsfor$100eachfromPCProducts,creditterms2/10,n/30.PreparethejournalentryforComputerCity.Now,assumethatComputerCitywaiteduntilDecember3(afterthediscountperiod)topayPCProducts.PreparethejournalentryforComputerCity.RecordingPurchasesatNetCost(cont.)RecordingPurchasesatGrossInvoicePriceOnNovember3,ComputerCitypurchased$10,000ofmerchandiseoncreditwithtermsof2/10,n/30fromPCProducts.PreparethejournalentryforComputerCity.OnNovember10,ComputerCitypaysthefullamountduetoPCProducts.PreparethejournalentryforComputerCity.RecordingPurchasesatGrossInvoicePrice(cont.)ReturnsofMerchandiseTheentrytorecordareturnistheoppositeoftheentrytorecordapurchase.AccountsPayableisreducedwithadebitandInventoryisreducedwithacredit.Thereductionsmustalsoberecordedinthesubsidiaryledgers.TransportationCostsTransportationcostsrelatingtotheacquisitionofinventory:Arenotexpensesofthecurrentperiod.Arepartofthecostoftheassetbeingacquired.KEYPOINTTheaccountingprincipleofmaterialitymayjustifyaccountingfortransportationcostsbyrecordingtheminanaccount“Transportation-in”whichisincludedinthecostofgoodssoldratherthanseparatingcostsintothoserelatedtoinventorythathasbeensoldandthosecostsrelatedtoinventorystillonhandattheendoftheaccountingperiod.Netsalesmeanssalesrevenueminussalesreturnsandallowancesandminussalesdiscounts.TransactionsRelatedtoSalesOnNovember5,HighlanderPubreturned$1,000ofunsatisfactorymerchandisetoComputerCityfromtheNovember3sale.ComputerCity’scostforthismerchandisewas$600.BecauseComputerCityusesaperpetualinventorysystem,theymustmaketwoentries.SalesReturnsandAllowancesOnNov.10,ComputerCityreceivesthefullamountduefromHighlanderPubfromthe

Nov.3sale(lesstheNov.5return).PreparethejournalentryforComputerCity.SalesDiscountsDeliveryExpensesIfasellerincursanycostsindeliveringmerchandisetothecustomer:ThesecostsaredebitedtoanexpenseaccountentitledDeliveryExpense.Inanincomestatement,deliveryexpenseisclassifiedasaregularoperatingexpense,notaspartofthecostofgoodssold.Businessescollectsalestaxatthepointofsale.Then,theyremitthetaxtotheappropriategovernmentalagencyattimesspecifiedbylaw.AccountingforSalesTaxesAdvantagesofSpecialJournalsTwo-columnjournalentriesareidealfortextillustrations,buttheyarenotanefficientwayforbusinessestorecordroutinetransactions.Specialjournalscombineidenticaltransactionsandrecordthemasagroup.Acompanymaycollectallofitssalesinformationforadayandrecorditasagroupattheendoftheday.AdvantagesofSpecialJournalsRelativetothegeneraljournal,specialjournalsofferthefollowingadvantages:Transactionsarerecordedfasterandmoreefficiently.Manyspecialjournalsmaybeinoperationatonetime,furtherincreasingthecompany’sabilitytohandlealargevolumeoftransactions.Automationmayreducetheriskoferrors.Employeesmaintainingspecialjournalsgenerallydonotneedexpertiseinaccounting.Therecordingoftransactionsmaybeanautomaticsideeffectofotherbasicbusinessactivities,suchascollectingcashfromcustomers.FinancialAnalysisNetSalesGrossProfitMarginsTrendsovertimeComparablestoresalesSalespersquarefootof

sellingspaceGrossprofit¸NetsalesOverallgrossprofitmarginGrossprofitmarginsby

departmentandproductsSalesdiscountsandallowancesarecontra-revenueaccounts.Salesdiscountsandallowancesreducegrosssales.Assuch,netincomewillbeincorrectifdiscountsandallowancesarenotproperlyrecorded.Thepressurebroughttobearonsubordinatestoimplementfraudulentschemesdevelopedbytopmanagementcanoftenbeintense.Topmanagementcanthreatenemployeeswithterminationiftheyfailtoparticipateinthefraud.Unfortunately,employeeswhoacquiescetosuchpressurefacetremendouslegalrisks.EthicalRisksandConcernsEthics,Fraud,&CorporateGovernanceAsdiscussedpreviouslyinthischapter,salesdiscountsandallowancesarecontra-revenueaccounts.Salesdiscountsandallowancesreducegrosssales.Assuch,netincomewillbeincorrectifdiscountsandallowancesarenotproperlyrecorded.TheSecuritiesandExchangeCommission(SEC)broughtanenforcementactionagainstPepsi-ColaPuertoRico(PepsiPR)allegingthatPepsiPRunderstateditssalesdiscountsandallowances.PepsiPRproduces,distributes,andmarketsPepsiCobeveragesthroughoutPuertoRico.PepsiPRisaseparatecompanyanditsstockwaslistedontheNewYorkStockExchangeatthetimeoftheSECenforcementaction.Ethics,Fraud,&CorporateGovernance

(cont.1)TheCoca-ColabottlerinPuertoRicoattemptedtogainmarketsharebycuttingprices.PepsiPRrespondedbyofferingmoregeneroussalesdiscountsandallowances.However,offeringtheseadditionaldiscountsandallowanceswouldhavereducedPepsiPR’snetincome.ThePepsiPRgeneralmanagerinstructedthecompany’sfinancestaffnottorecordsomeofthesalesdiscountsandallowancesgiventocustomers.PepsiPR’sfailuretorecorddiscountsandallowancesresultedinnetincomeforthefirstquarterbeingoverstatedby$3.3millionandnetincomeforthesecondquarterbeingoverstatedby$5.7million.PepsiPRconsentedtoanSECcease-and-desistorderwithouteitheradmittingordenyingguilt.Ethics,Fraud,&CorporateGovernance(cont.2)AlthoughPepsiPR’sgeneralmanagerinitiatedtheschemethatledtothemisstatementofPepsiPR’sfinancialstatements,thefailuretorecordsalesdiscountsandallowanceswascarriedoutbythecompany’sdirectoroffinanceandotherfinancedepartmentstaffers.TheindividualswhocarriedoutthisschemeknewthatPepsiPR’sfinancialresultswouldbemisstatedifsalesdiscountsandallowanceswerenotrecordedcorrectly.However,theseindividualswereunwillingtodefytheirsuperior,evenwhentheirsuperiorwasaskingthemtoengageinunethicalandillegalbehavior.Incasesoffraudulentfinancialreporting,subordinatesbeingpressuredbysuperiorstoimplementthefraudschemeisrelativelycommon.Ethics,Fraud,&CorporateGovernance(cont.3)Thepressurebroughttobearonsubordinatestoimplementfraudulentschemesdevelopedbytopmanagementcanoftenbeintense.Topmanagementcanthreatenemployeeswithterminationiftheyfailtoparticipateinthefraud.Unfortunately,employeeswhoacquiescetosuchpressurefacetremendouslegalrisks.Unliketheirsuperiors,thefingerprintsoflower-levelemployeeswhoactuallyimplementthefraudulentschemeareallovertheincriminatingdocuments.Forexample,amidleveltaxmanagerwhowasconvictedofparticipatinginaschemetomisstateDynegy’sfinancialstatementswassentencedto24yearsinfederalprison(althoughthissentencewassubstantiallyreducedonappeal).Thisindividual’sbosses,whowereequallycomplicitinthescheme,pleadedguiltyandtestifiedagainsttheirformeremployee.Theyreceivedlessthanfiveyearsinprison.Ethics,Fraud,&CorporateGovernance(concluded)TheSarbanes–OxleyActprovidessomeprotectionforlower-levelemployeeswhoarepressuredtoparticipateinanaccountingfraud.Publiccompanyauditcommitteesmustestablishprocedures(typicallycompany“hotlines”)thatcanbeusedbyemployeesreportingconcernsrelatedtoquestionableaccountingorauditingmatters.Inaddition,Sarbanes–Oxleyincludescertain“whistleblower”protections.Inaddition,undertheDodd–FrankActof2010,CongressauthorizedtheSECtopaymonetaryawardstowhistleblowerswhoprovideoriginalinformationthatleadstoanSECactionwherepenaltiesof$1millionormoreareassessed.LearningObjectiveSummaryLO6-1LO6-1:Describetheoperatingcycleofamerchandisingcompany.

Theoperatingcycleistherepeatingsequenceoftransactionsbywhichacompanygeneratesrevenueandcashreceiptsfromcustomers.Inamerchandisingcompany,theoperatingcycleconsistsofthefollowingtransactions:(1)purchasesofmerchandise,(2)saleofthemerchandise—oftenonaccount,and(3)collectionofaccountsreceivablefromcustomers.LearningObjectiveSummaryLO6-2LO6-2:Understandthecomponentsofamerchandisingcompany’sincomestatement.

Inamerchandisingcompany’sincomestatement,sales(ornetsales)representthetotalrevenuegeneratedbysellingmerchandisetoitscustomers.Asitemsaresoldfrominventory,theircostsaretransferredfromthebalancesheettotheincomestatement,wheretheyappearasthecostofgoodssold.Thecostofgoodssoldissubtractedfromsalestodeterminethecompany’sgrossprofit.Otherexpenses(suchaswages,advertising,utilities,anddepreciation)aresubtractedfromgrossprofittodeterminenetincome.Onlyifacompany’sgrossprofitexceedsthesumofitsotherexpenseswillitbeprofitable.LearningObjectiveSummaryLO6-3LO6-3:Accountforpurchasesandsalesofmerchandiseinaperpetualinventorysystem.

Inaperpetualinventorysystem,purchasesofmerchandisearerecordeddirectlyintheInventoryaccount.Twoentriesarerequiredtorecordeachsale:onetorecognizesalesrevenueandthesecondtorecordthecostofgoodssold.ThissecondentryincreasesCostofGoodsSoldandreducesInventory.LearningObjectiveSummaryLO6-4LO6-4:Explainhowaperiodicinventorysystemoperates.

Inaperiodicsystem,up-to-daterecordsarenotmaintainedforinventoryorthecostofgoodssoldwheninventoryitemsarepurchasedorsold.Thisrequireslessrecordkeepingthaninaperpetualsystem.Thebeginningandendinginventoriesaredeterminedbytakingaphysicalcountateachyear-end.PurchasesarerecordedinaPurchasesaccount,andnoentriesaremadetorecordthecostofindividualsalestransactions.Instead,thecostofgoodssoldisdeterminedatyear-endbyacomputation.Theamountsofinventoryandthecostofgoodssoldarerecordedintheaccountingrecordsduringtheyear-endclosingproceduresLearningObjectiveSummaryLO6-5LO6-5:Discussthefactorstobeconsideredinselectinganinventorysystem.

Ingeneralterms,aperpetualsystemshouldbeusedwhen(1)managementandemployeesneedcontinuoustimelyinformationaboutinventorylevelsandproductsales,and(2)thecompanyhastheresourcestodevelopthisinformationatareasonablecost.Aperiodicsystemshouldbeusedwhentheusefulnessofcurrentinformationaboutinventoriesdoesnotjustifythecostofmaintainingaperpetualsystem.Perpetualsystemsaremostwidelyusedincompanieswithcomputerizedaccountingsystemsandinbusinessesthatsellhigh-costmerchandise.Periodicsystemsaremostoftenusedinsmallbusinessesthathavemanualaccountingsystemsandthatsellmanytypesoflow-costmerchandise.LearningObjectiveSummaryLO6-6LO6-6:Accountforadditionalmerchandisingtransactionsrelatedtopurchasesandsales.

Buyersshouldrecordpurchasesatthenetcostandrecordanycashdiscountslostinanexpe