Accounting Flashcards
3 New accounts
not finacnical statements of a service company
the merchandisers total COST of aquiring goods that has not yet sold
Inventory
Total selling price of all goods that the merchandiser did sell to customers
Sales Revenue
updates the inventory records for merchandise purchases sales and returns only at the end of the account period
Periodic Inventory System
BI+P-EI
Beganging inventory+ Purchases- Ending Inventory
COST OF GOODS SOLD EQUATION
Total cost of all goods that merchandisers did sell to customers
Cost of goods sold
when is the inventory still physically counted
at the end of the period
Each merchandise sale has two components each of which requries an entry in a perpetual inventory system
Recording Inventory Sales
Sales revenue- COGS
Gross Profit
A sale requires blank journal entires in a prepetual inventory system
TWO
keep the item recieve it at a discounted price
Allowence
a return requires blank journal entires aswell
two
