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10 Cards in this Set
- Front
- Back
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Net Sales |
- Cost of goods sold (COGS) + Gross profit (aka Gross Margin) - Operation expense + Income from operations -/+ other rev/expense (interest rev/exp) |
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FOB Shipping Point |
Aka FOB in =buyer's responsibility to pay shipping costs |
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FOB Destination Point |
Aka Delivery Point Seller's responsibility to pay shipping costs |
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Perpetual (Buyer) |
PURCH
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Periodic (Buyer) |
PURCH
PURCH RETURN & ALLOW
PURCH DISCOUNT
TRANSPO IN (FOB SHIPPING POINT)
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Perpetual (Seller) |
SALES Dr. A/R Cr. Sales Dr. Cost of Goods Sold Cr. Merch Inv. SALES RET Dr. Sales Return Cr. A/R Dr. Merch Inv Cr. COGS SALES ALLOW Dr. Sales Ret & Allow Cr. A/R SALES DISCOUNT Dr. CASH Dr. Sales Discount Cr. A/R TRANSPO OUT Dr. Transpo Out Cr. CASH |
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Computing Rev, Exp & Income |
Sales - COGS = Gross Profit - Expense = NET INCOME (loss) Begg Inv + Cost of Merch Purch = Cost of Goods Avail - Ending Inv = COGS |
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COGS |
(cost of purchases / NET): dr. Purchases (+) cr. Purchases Ret & Allow (-) cr. Purchases discounts (-) dr. Transpo in (+) = Cost of goods Available -Ending inv = Cost of Goods Sold |
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Multi-Step Income Statement |
1. Gross Profit net sales - cost of goods sold 2. Income from operations gross profit - operating expenses 3. Net Income Income from operations adjusted for nonoperating items |
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