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KAYLA SYTAHRENNI SA ao1to22 3006 Accounting==|orer)lorchanctising s@PerartIor” SHereReNaLngT ORRROTT Tens nue ET For frample+ REI -Wol-Hort and AmaxOn.com > Hemchandistog companies ‘Tait wexctoresi0g Compares, ecavie they buy and fe mecchondie rather than per¢orm ‘SeIUKes OF then Primary source O¢ Revenue. | retaser-> Herctoniing companies shar Puchaue ond fen dectly 40 eOmUmers ‘THOwTaxers > Herehondhing comgones that few 40 ceeaners Cart GF ACEH old > rotatcate oe Mexchardie roid dUNINg che pened Gores Revere ce abe Coit OF Geod! Sod —> Grox promt J fade ‘operating Expeniet — Net income CLost} yete of fervice company __Merconaang campones // recerye cath —> coh ——y [= oh otha yd Y L perform services) Crane) el ean oa oom ) remereneT purchased | cost 0 es | ,awwobeeer foe core Enaing Goon 1016, seventory [persia aterm ‘ieeaie santana 9 © Perpetua mavenrory eystem eompanies go not iceep ceeaued inventory Compames ‘een geraied records oF the records oe the goods on hon troughout cart ofeach imvenrory Purchoted ardiae. the veo. waventory Pucchaved > record reveue ord aventory PUTAS > Record REVERIE commute $ recnids COst OF qtods fold > ‘Oni > compure and record coit o¢ [Mo ene aoods cord Reece” pucroiey Uraer a ere EGER Feaireny The sales agreement should indicate who the keller oF the bUYer 1610 Pay For transporting the goods to the buyer'< ploce oF buctine?, Freight terms are Exprered ax ether FOB shipping Point / FOB pectnation FOB Shipping Paint=> the cetler Placet tO the Goods ereean boom. bUYer POYE Fob Dermnawon = the celter paces the Good! ¢ree ON bOOIT. buyer! place o€ bULINeS. Freghe er wncured bye Buyer 7186 Dboyert incucs the (romPortation coFt -> Purchoting «nuentory 180 The buyer debt ero TheaveNoy occcune, cath FlOuT -180 [Al fei) le) le “Freght-comtnecured=by-the rere =P =160 Freight cart inceured bY the eter on oUtgoINg Merchendhe Toh HOw =160 orean operating expene 40 thererer. [Pureisie eturnt ana) piicwanees) L oe 1 If the merchandies defective «oF MIE quality. -300 ‘his transactions if known OFA PUrchOLe Allowane “Cash Flowt + nO ereece ‘the credit terms Of a Purchase On AeCOUNE MOY Permie the buyer to clam a cash discount for prompt Payment. [Recording Scie Under al perpewal suctem) | (0) GN crease (debit) iM ater retwe ard atounnces and decteare Ceredit) In Account Receivable at the setting price (2) an meteare Cdebt) in inventory and a decteate Ccredit) in ait o€ Goods ford 1b the sever may e¢ger the customer a cash dimunt . sates DicoUEt 1x0 contra cevenve account 16 sare account Reveme. Fhe recounting” cycle fora: marehondieg Company’ 45 Rditng Entees 4S crosing Ensiies AS Summory O€ Herchanaisng Entiret Ly ert (0 CPS ve Sta WefOMoMe because (t shows Cevetal éFePE Wo dererMmNIND ret income de income ctotement Presentation OF rales BS Grow Proce GOH promt + Net sales = Grose Proeit Rote by Operating Expences acd ner income Chert component in measuring Het income _ foto Mmerchandiie comeany). ib wonoperating Retwittes Ceannst oF vaneUr revenves and ExpenIes and gains anc Toffes thar ate unrelated to the compaNY’s Main Line OF OPEratont & single step income Statements CON'Y one step - Subtracting Ota! ExPenres from total revenues ©) Ravenves , meulde both operating ceuenver ond other cevenves ard gaint G2) Expenier , ineiWde COM OF QOODS S0Id , operating eXPENIeS sand other expeniec and 1oKes. BF compehencve imcome statement ‘ye Closnered @aiance sheer

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