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38 Cards in this Set
- Front
- Back
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average cost
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COGS/total units available for sale
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Gross profit:
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sales-COGS
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Inventory Turn over ratio
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COGS/average inventory(number of times)
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Days in Inventory
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365/Inventory Turn over ratio
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Flow of cost
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Cost of beginning inventory
+COGS purchased _________________ COGS available for sale -COGS ____________ Cost of goods in ending inventory |
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Perpetual inventory
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continuous record maintained, COGS recorded at time of sale.
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Periodic inventory
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Physical inventory taken at the end of the accounting period
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Journal: Recording purchases of merchandise
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Inventory
AP/Cash |
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Journal:Record payment of freight on purchase
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Inventory
Cash |
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Journal:Discount taken
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AP
Inventory Cash |
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Journal: Return of Merchandise purchased
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AP/Cash
Inventory |
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Journal: Recording Sales of Merchandise
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AR
Sales Inventory COGS |
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Journal: Sales Returns and Allowances
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Sales R&A
AR/Cash Inventory COGS |
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Journal: Return of Merchandise purchased
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AP/Cash
Inventory |
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Sales Discounts
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Cash
Sales Discounts AR |
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Journal: Recording Sales of Merchandise
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AR
Sales Inventory COGS |
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Gross Profit Ratio
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gross profit/net sales %
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Profit Margin Ratio
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Net income/Net Sales %
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Journal: Sales Returns and Allowances
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Sales R&A
AR/Cash Inventory COGS |
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Taxes (Fifo and Lifo)
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Highest: FIFO
Lowest: LIFO |
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Sales Discounts
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Cash
Sales Discounts AR |
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Gross Profit Ratio
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gross profit/net sales %
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Fraud Triangle
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Financial Pressure
Opportunity Rationalization |
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Receivables turnover ratio
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Sales/Average AR
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Profit Margin Ratio
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Net income/Net Sales %
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Taxes (Fifo and Lifo)
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Highest: FIFO
Lowest: LIFO |
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Average Collection Period Ratio
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365/Receivables turnover ratio
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Fraud Triangle
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Financial Pressure
Opportunity Rationalization |
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Inventory Turnover Ratio
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Sales/Average inventory
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Average Collection Period Ratio
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365/Receivables turnover ratio
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Average inventory
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Beginning + end/2
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Company's Bank Statement: Bank side
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Balance at end of month
+Deposits in Transit _________________ --Outstanding Checks __________________ Adjusted Cash Balance |
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Company's Bank Statement: us
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Cash Balance
+collection of a note __________________ --NSF check --error --service charge ______________ Adjusted Cash Balance |
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Journalize: Loaned $35,000 cash on a 1 year note (record interest in last transaction)
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Note Rec 35,0000
Cash |
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Journalize: Recieved a $10,000, 9 month 6%
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Note Rec 10,000
Cash |
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Record interest of notes
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Interest Recievable
Interest revenue |
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Recording bad debts: allowance method
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Bad dept exp
Allowance for DA Allowance for DA AR |
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Balance Sheet
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Recievables
Less: Allowance for DA =Net recievables |
