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Merchandising

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  • November 2012
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MERCHANDISING
* Discounts
a) Cash Discounts
-prompt payment
-recorded
b) Trade Discounts
-deducted to list price to get invoice price
-bulk orders
-not recorded
* Transportation Cost
a) FOB Destination, Freight Prepaid
-si seller ang dapat magbayad kaya siya ang nagbayad
ENTRIES:
Buyer| Seller|
Purchases Accounts Payable| Accounts Receivable Sales| No Entry| Freight-Out Cash|

b) FOB Destination, Freight Collect
-si seller ang dapat magbayad pero si buyer muna ang nagbayad ENTRIES:
Buyer| Seller|
Purchases Accounts Payable| Accounts Receivable Sales| Accounts Payable Cash| Freight-Out Accounts Receivable|

c) FOB Shipping Point, Freight Collect
-si buyer ang dapat magbayad kaya siya ang nagbayad
ENTRIES:
Buyer| Seller|
Purchases Accounts Payable| Accounts Receivable Sales| Freight-in Cash| No Entry|

d) FOB Shipping Point, Freight Prepaid
-si seller ang dapat magbayad pero si seller ang nagbayad
ENTRIES:
Buyer| Seller|
Purchases Accounts Payable| Accounts Receivable Sales| Freight-in Accounts Payable| Accounts Receivable Cash|

* Invetory Systems
a) Perpetual Inventory System
-the inventory account is continuously updated.
-high-priced, low- volume goods
b) Periodic Inventory System
-the inventory account is not continuously updated.
-inexpensive goods

MAIN FORMULA IN MERCHANDISING:
Net Sales
-Cost of Sales/Cost of Goods Sold
Gross Profit
-Expenses
Net Profit/Net Loss

* Net Sales
Gross Sales
-Sales Discount
-Sales Returns & Allowances Net Sales
Periodic| Perpetual| Cash/Accounts Payable Sales| Cash/Accounts Receivable SalesCost of Sales...

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