Exam 3 Notecard.docx - LCM dr COGS cr inv for diff amount...

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LCM : dr COGS cr inv for diff amount sale: dr inv cr accts payable disc sale: dr accts payable cr cash and inv(for disc amount) return: dr accts payable cr inv (for amount after disc) sell all inv: dr cash cr sales dr COGS cr inv(for amount sold with disc) half paid in disc pd: dr accts pay cr inv and cash(for amount disc) GProfit %: sales-COGS/sales x 100 avg days to collect on acct: 365/AR TO ratio Inv TO ratio: COGS/Avg Inv Days to sell: 365/inv. TO ratio A/R TO: net sales/avg net AR---(avg net ar=gross-allowance for D.A.) Allowance method: % of sales—(I/S first, B/S next-solve bad debt 1 st ) bad debt: dr bad debt ex cr allowance for D.A. cash allow: dr cash cr inv % rec/aging: B/S method: % collectible X AR, diff is allowance and diff goes in allowance t
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