ACCT 2101 Final Study Notes

ACCT 2101 Final Study Notes - Percent of Sales Method...

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Deferred Revenue = Unearned Revenue Merchandise Available for Sale = BI + Purchases = EI + COGS Shipping Point = Receiver pays Shipping Destination = Shipper pays Gross Profit = Net Sales – COGS FIFO = higher net income when prices are rising (normal) LIFO = lower net income when prices are rising (normal) Inventory Under/Overstated: COGS = opposite first year, same second year Net Income = same first year, opposite second year Allowance for Doubtful Accounts (ADA) – contra asset account with a normal credit balance
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Unformatted text preview: Percent of Sales Method adjusting entry = estimated bad debts Accounts Receivable Methods adjusting entry = amount needed to make total equal to estimated bad debts Balance of Accounts Receivable = Net Realizable Value of Receivables + ADA Total Bond Interest Expense = Total amount paid minus total amount received % of Sales Allowance Method focuses on matching and income statement % of Receivables & Aging of Receivables focuses on net realizable value and balance sheet...
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