Ch.5-6 Review

Ch.5-6 Review - Chapter 5 Accounting for Merchandising...

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Chapter 5 Accounting for Merchandising Operations _____________________________________________________ The main points of the chapter are : 1. Accounting for Merchandise Purchases Trade Discounts Deductions from list price (catalog price) to arrive at invoice price (actual selling price). Trade discounts are not entered into accounts. Purchase Discounts Credit terms describe cash discounts offered to purchasers by seller for payment within a specified period of time called the discount period. Purchase Returns and Allowances Transportation Costs and Ownership Transfer 2. Accounting for Merchandise Sales Each sale of merchandise transaction involves two parts; the revenue and the cost. Sales Discounts Cash discounts awarded to customers for payment within the discount period. Sales Returns and Allowances 1-1
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Chapter 6 Inventories and Cost of Sales _____________________________________________________ The main points of the chapter are : 1. Determine inventory purchase costs
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Ch.5-6 Review - Chapter 5 Accounting for Merchandising...

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