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  • Presentation in The:: (MV Before RC Plus RC)

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    Nadine Santiago
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    This document discusses accounting treatments for merchandise inventory trade-ins, repossessed merchandise, and shipments on installment sales in both periodic and perpetual inventory systems. It explains that trade-in merchandise is recorded as a current asset and included in ending inventory or purchases depending on the system. Repossessed merchandise is also recorded as a current asset, with reconditioning costs added to inventory or purchases. Shipments on installment sales are deducted from cost of goods sold to determine the adjusted cost of goods sold figure.

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    instalment sales Presentation

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    instalment sales Presentation

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    This document discusses accounting treatments for merchandise inventory trade-ins, repossessed merchandise, and shipments on installment sales in both periodic and perpetual inventory systems. It explains that trade-in merchandise is recorded as a current asset and included in ending inventory or purchases depending on the system. Repossessed merchandise is also recorded as a current asset, with reconditioning costs added to inventory or purchases. Shipments on installment sales are deducted from cost of goods sold to determine the adjusted cost of goods sold figure.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    5 views1 page

    Presentation in The:: (MV Before RC Plus RC)

    Uploaded by

    Nadine Santiago
    This document discusses accounting treatments for merchandise inventory trade-ins, repossessed merchandise, and shipments on installment sales in both periodic and perpetual inventory systems. It explains that trade-in merchandise is recorded as a current asset and included in ending inventory or purchases depending on the system. Repossessed merchandise is also recorded as a current asset, with reconditioning costs added to inventory or purchases. Shipments on installment sales are deducted from cost of goods sold to determine the adjusted cost of goods sold figure.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Presentation in the:

    Merchandise Inventory Trade-in


    (MV before RC plus RC)

    Balance Sheet

    Income Statement

    Current asset (inventory)

    Part of Ending Inventory (if remains unsold)

    To record RC:
    Trade-In Merch
    Cash

    If periodic:
    separate nominal account (T-In Merch)
    added to purchases (to determine COGS)

    xx
    xx

    If perpetual:
    Repossessed Merch
    xx
    Merch Inv Repossessed xx
    Repossessed Merchandise
    (MV before RC plus RC)

    Current asset (inventory)

    *RC = reconditioning cost

    To record RC:
    Repossessed Merch xx
    Cash
    xx

    added to purchases (to determine COGS)

    Shipments on Instalment Sales


    (used in periodic inventory)

    To set up COIS:
    COIS
    xx
    Shipment on Inst Sales
    xx
    deducted from COGAS
    subtracted item from the sum of the Beg, Inv &
    Purchases in determining COGAS
    adjustment to RGP
    resulting balance :
    Total RGP after Adjustment for G/L on
    Repossession

    G/L on Repossession

    Instalment A/R

    Current Asset
    regardless of the length of time
    required for its collection

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