ch05 WebCT - Chapter 5 Chapter Accounting for Merchandising...

Info icon This preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 5-1 Accounting for Merchandising Operations Chapter Chapter 5 5 ACCT 2111– Introductory Financial Accounting
Image of page 1

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

View Full Document Right Arrow Icon
Chapter 5-2 Merchandising Operations Merchandising Operations Merchandising Companies Merchandising Companies Buy and Sell Goods Wholesaler Retailer Consumer Theprimary sourceof revenues is referred to as sales revenue or sales .
Image of page 2
Chapter 5-3 Merchandising Operations Merchandising Operations Income Measurement Income Measurement Illustration 5-1 Cost of goods sold is the total cost of merchandisesold during the period. Not used in a Service business. Net Income (Loss) Less Less Equal s Equal s Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses
Image of page 3

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

View Full Document Right Arrow Icon
Chapter 5-4 The operating cycle of a merchandising company ordinarily is longer than that of a service company . Operating Cycles Operating Cycles Illustration 5-2
Image of page 4
Chapter 5-5 FOB shipping point - seller places goods FreeOn Board thecarrier, and buyer pays freight costs. FOB destination - seller places thegoods FreeOn Board to the buyer’s placeof business, and seller pays freight costs. Freight Costs Freight Costs Recording Purchases of Merchandise Recording Purchases of Merchandise * Freight costs incurred by the purchaser increases theMerchandise Inventory * Freight costs incurred by the seller on outgoing merchandiseare an operating expenseto the seller ( Freight-out or Delivery Expense). A pricing Terms
Image of page 5

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

View Full Document Right Arrow Icon
Chapter 5-6 Terms 2/10, n/30: two-ten, net thirty 2% cash discount if payment is madewithin 10 days, or otherwise the entire balanceis due within 30 days of theinvoice Credit Terms Credit Terms Recording Sales of Merchandise Recording Sales of Merchandise
Image of page 6
Chapter 5-7 Purchaser may be dissatisfied
Image of page 7

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

View Full Document Right Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern