Ch 5 Notes - - Transportation IN Buyer Pays (Cost of...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 5 Notes  12/02/2007 11:00:00 Ch 5: Accounting For Merchandising Businesses Service Do Stuff Merchandising Buy stuff then sell it Largest merchandiser is Wal-Mart. Manufacturing Make stuff then sell it Expense Cost of goods sold.C Sales – Cost of Goods Sold = Gross Profit (Margin) - Costs of Goods Sold Product Costs - Operating Expenses Period Costs - Merchandising Asset Account o Inventory Inventory is an asset waiting to be expensed. - Perpetual Running book count Know inventory loss - Periodic
Background image of page 1

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

View Full DocumentRight Arrow Icon
No book count Adjust inventory at end
Background image of page 2
Background image of page 3

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

View Full DocumentRight Arrow Icon
Background image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: - Transportation IN Buyer Pays (Cost of Goods). o Product Cost. - Transportation OUT Seller Pays (Delivery Expense). o Period Cost (Part of Operating Expenses). - Formula To Find Cost of Goods Sold Beginning Inventory + Purchases = Cost of Goods Available for Sale Ending Inventory = Cost of Goods Sold - Multi Step Income Statement Sales Cost of Goods Sold = Gross Profit Operating Exp. = Net Income - Single Step Income Statement Sales Cost of Goods Sold Operating Exp. = Net Income - Gross Profit (Margin) Sales 12/02/2007 11:00:00 12/02/2007 11:00:00...
View Full Document

This note was uploaded on 10/03/2011 for the course BUS 222 taught by Professor Jennings during the Spring '07 term at University of Maine Orono .

Page1 / 4

Ch 5 Notes - - Transportation IN Buyer Pays (Cost of...

This preview shows document pages 1 - 4. Sign up to view the full document.

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