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23 Cards in this Set
- Front
- Back
- 3rd side (hint)
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SALES
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Revenue earned by merchandier (credit the balance)
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Returns
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When a customer gives back product and wants a full refund (contra revenue = debit)
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Discount
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Company offers reduction in price if you pay early (2/10,n/30)
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Net Sales
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Sales - returns - discount = net sales
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Cost Of Goods Sold (COGS)
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cost of whatever sold (largest expense)
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Inventories
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(Current Asset) Items for sale (put on balance sheet at cost)
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Perpetual
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Recorded as soon as sold
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Periodic
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Record after end of period (adjusting entries) (does not account for theft)
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Gross Profit (GP)
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Net Sale - Cost of goods sold (COGS) = GP
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Operating Expenses
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Other Expenses (advertising) (administrative)
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Operating Income
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Gross Profit - other income expenses
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General Ledger
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list of all major accounts, including control accounts, used by an organization.
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General and Subsidiary Ledgers
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Control Account
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account that adds up balances, detailed account of another ledger
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General and Subsidiary Ledgers
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Subsidiary ledger
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provides detailes of individual accounts
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General and Subsidiary Ledgers
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Seller: Credit Card Sales of inventory
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CC= SAME AS CASH
Cash XXX Sales XXX COGS XXX Inventory XXX End of Month CC Exp XXX Cash XXX |
Sales and Purchases Transactions
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Seller: Sale of inventory on account
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AR (name) XXX
Sales XXX COGS XXX Inventory XXXX |
Sales and Purchases Transactions
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Seller: Receipt of customer payment before discounted period has elapsed
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Cash XXX
Sales Discount XXX AR (name) XXX |
Sales and Purchases Transactions
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Seller: Reduction in price allowed to the customer due to a problem with the product
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Sales R&A XXX
Cash/ or AR (name) XXX |
Sales and Purchases Transactions
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Seller: Return of inventory accepted by the seller
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Sellers R&A XXX
Cash/ AR (name) XXX Inventory XXX COGS XXX |
Sales and Purchases Transactions
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Purchaser: Purchase of inventory on account
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purchase of inventory on account (Best Buy-us- buying from another store)
Inventory XXX AP (name) XXX |
Sales and Purchases Transactions
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Purchaser: Payment Before the discount period has elapsed
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AP (name of seller) XXX
lnv XXX Cash XXX |
Sales and Purchases Transactions
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Purchaser: Reduction in price allowed to the purchaser due to problem with the product
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Cash/OR AP (SELLER) XXX
INVENTORY XXX |
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Purchaser: Return of inventory by the purchaser
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Cash/ or AP (name) XXX
Inventory XXX |
Sales and Purchases Transactions
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