Mgmt_200_Spring_2008_Chap_6_Revenue_and_Receivables(1,31)

Mgmt_200_Spring_2008_Chap_6_Revenue_and_Receivables(1,31) -...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Sales Revenue Revenue recognition principle Point of Sale FOB shipping point, FOB destination. Net sales revenue (Contra revenue accounts) Credit card discounts Sales discounts (1/10, n/45) Sales returns and allowances Sales returns involves COGS reversal
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
E 6-2: Reporting Net Sales with Credit Sales, Sales Discounts, Sales Returns, and Credit Card Sales The following transactions were selected from the records of Evergreen Company: Required: Assuming that Sales Returns and Allowances, Sales Discounts, and Credit Card Discounts are treated as contra-revenues, compute net sales for the two months ended August 31 by filling in the following schedule.
Background image of page 2
Gross Margin Gross Margin (Gross Profit) = Net Sales – Cost of goods sold Gross Profit percentage (rate) = Gross profit / Sales Common size income statement
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Statement The following summarized data were provided by the records of Slate, Incorporated, for the year ended December 31, 2007: Required: 1. Based on these data, prepare an income statement (showing both gross profit and income from operations). Include a “percentage” column reporting each line item as a percentage of sales (see Chapter 5 for a discussion of common-size income statements and percentage analysis). 2. What was the amount of gross profit margin? What was the gross profit
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/22/2009 for the course MGMT 200 taught by Professor Greigg during the Spring '08 term at Purdue University-West Lafayette.

Page1 / 16

Mgmt_200_Spring_2008_Chap_6_Revenue_and_Receivables(1,31) -...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online