Term
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Definition
Begining Inventory
Add: net purchases
Total is Cost of goods available for sale
Deduct ending inventory
Total is cost of goods sold |
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Term
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Definition
Purchases
Deduct Returns
Deduct Discounts
Add Freight In
Total is Net Purchases |
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Term
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Definition
| Cost of shipping items purchased to you. |
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Term
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Definition
| Cost of transporting goods to customers and we have agreed to pay for the cost |
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Term
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Definition
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Term
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Definition
Beginning Salary Payable
Add salary expense
Deduct salary paid
Total is Ending Salary payable |
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Term
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Definition
Cost of beginning inventory
Add cost of purchases
Divide by:
Beginning unit inventory
Add units purchased.
Total is Weighted average cost per unit |
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Term
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Definition
| Use the newest inventory calculations |
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Term
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Definition
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Term
| Which method will show the highest net income? |
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Definition
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Term
| Which method will show the highest total assets? |
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Definition
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Term
| Which method will give an income tax advantage? |
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Definition
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Term
| Accounts Receivable Formulat |
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Definition
Beginning Balance
Add sales revenue
Subtract Cash Collections
Ending balance |
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Term
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Definition
Sales revenue
Deduct Cost of goods sold
Total Gross Profit |
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Term
| Cost of Goods Sold Formula |
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Definition
Beginning inventory
Add purchases
subtract ending balance
Total is COGS |
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Term
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Definition
Beginning balance
Add Purchases
Subtract: Cash paid to suppliers
Total is ending balance |
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