Term
| What is the difference between periodic and perpetual? |
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Definition
Periodic- no detail record of goods and determines cost of goods sold only at the end of the acc period.
Perpetual-A detailed inventory system where a company cost of each inventory item and records continuously show the inventory that should be on hand. |
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Term
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Definition
| a deduction made my the selling price of merch, granted by the seller so that the buyer will keep the merch. |
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Term
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Definition
| a cash discount claimed by buyer for prompt payment of a balance due. |
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Term
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Definition
| SALES-SALES RETURNS AND ALLOWANCES-SALES DISCOUNTS |
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Term
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Definition
Inventory xx
Accounts Payable xx (cash) |
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Term
| Freight incurred by buyer |
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Definition
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Term
| Freight incurred by seller |
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Definition
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Term
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Definition
Accounts Payable xx
Inventory xx |
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Term
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Definition
Accounts payable xx
Cash xx
Inventory xx |
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Term
| Recording Sales of Merchandise |
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Definition
Accounts Receivable xx
Sales revenue xx
Cost of goods sold xx
Inventory xx |
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Term
| sales returns and allowances |
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Definition
Sales Returns and Allowances xx
Accounts Receivable xx
Inventory xx
Cost of goods sold xx |
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Term
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Definition
Cash 3430
Sales Discount 70
Accounts receivable 3500
(to record collection within n/10, n/30) |
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Term
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Definition
| net sales - cost of goods sold (Gross Profit) divided by sales revenue - sales returns and allowances- sales discounts (net sales) |
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Term
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Definition
| Net income divided by net sales |
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Term
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Definition
| Goods held for sale by one party although ownership of the goods is retained by another party |
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Term
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Definition
| Cost of goods sold divided by average inventory |
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Term
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Definition
| 365 days divided by inventory turnover ratio |
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Term
| what are the major advantages and disadvantages of specific identification method |
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Definition
advantage- it tracks the actual physical flow of goods available for sale
Disadvantages- MGMT can manipulate net income |
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Term
| how is weighted average unit cost calculated? |
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Definition
| Cost of goods available for sale divided by total units available for sale = average cost |
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