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18 Cards in this Set
- Front
- Back
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Purchase of Merchandise (entry)
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debit inventory
credit accounts payable/cash |
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Freight Costs From a Purchase (entry)
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Debit Inventory
Credit Cash |
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Freight Costs From a Sale (entry)
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Debit freight out
Credit cash |
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Return of a Purchase (entry)
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Debit Accounts payable
Credit inventory |
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Discount on a Purchase (entry)
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Debit Accounts Payable
credit cash credit inventory |
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Sale of merchandise (entry)
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debit accounts receivable
credit sales debit cost of goods sold credit inventory |
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Sales Returns (entry)
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debit sales returns
credit accounts receivable debit inventory credit cost of goods sold |
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Discount on a Sale (entry)
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debit cash
debit sales discount credit accounts receivable |
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Net Sales Formula (Income Statement)
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sales revenue - sales returns - sales discounts
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Gross Profits Formula (Income Statement)
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net sales - cost of goods sold
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income from operations Formula (Income Statement)
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gross profits - operating expenses
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Net Income Forumula (Income Statement)
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income from operations + other revenues - other expenses
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Other revenue (Income Statement)
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interest revenue
gain on sale of equipment |
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other expenses (Income Statement)
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interest expense
casualty loss |
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gross profit rate formula
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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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Balance per Bank (Bank Reconciliation)
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add- deposits in transit
deduct- outstanding checks add/deduct- bank errors |
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Balance per Book (Bank Reconciliation)
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add- collection of note receivable
add- interest revenue deduct- NSF check deduct- bank service charge add/deduct- error in recording check |
