Exam 2 review(no ch7)

Exam 2 review(no ch7) - o Direct write off vs. the...

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Cal Poly State University, SLO Orfalea College of Business BUS 214 Michelle Bissonnette Review Exam 2 Chapter 5 Merchandising Operations and the Multi-Step Income Statement o Periodic vs. perpetual inventory systems o Recording sales of merchandise o Income statement presentation-multistep format vs. single step o Chapter 6 Inventory o Importance of valuing inventory correctly o Calculation of Cost of Goods Sold for periodic inventory o Inventory Costing Systems - FIFO LIFO Weighted Average Specific Identification o Computations of Ending Inventory and Cost of Goods Sold using the cost flow assumptions o Effect of differing costing methods on the balance sheet and the income statements o Which method is preferable under differing circumstances? o Valuation of Inventory using Lower of Cost or Market o Disclosure requirements for inventory Chapter 8 Accounts Receivable o Difference between accounts receivable and notes receivable
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Unformatted text preview: o Direct write off vs. the allowance method. Which is preferred and why? o Advantages and disadvantages of both methods o What is the allowance method? o What are the two GAAP methods available ? % sales and % receivables (aging) o Journal entries related to accounts receivable activity o How do you estimate the allowance using both methods? o How do you estimate bad debt expense using the two methods? o What are the balance sheet and income statement effects of the two methods? o Which method is preferred and why? Work the Demonstration problems at the end of the Chapters for additional practice. Also the B problems are very similar to the A problems. Work the B problems that correlate to the A problems assigned and vice versa. I highly recommend working extra problems in each chapter since there was a limited amount of homework covered in class. I can help with suggestions....
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This note was uploaded on 11/21/2011 for the course BUS 214 taught by Professor Waker during the Winter '08 term at Cal Poly.

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