ACCY midterm 2 Flashcards
1
Q
Cost of goods sold equation
A
COGS = beginning inventory + purchases - ending inventory
2
Q
Ending inventory equation
A
ending inventory = beginning inventory + purchases - COGS
3
Q
Bad debt expense equation
A
bad debt expense = ending balance of allowance for doubtful accounts- beginning balance of allowance for doubtful accounts + write-offs
3
Q
book value
A
represents the value of the assets on the company’s books at that point in time
book value = original cost - accumulated depreciation
4
Q
cost of lot equation
A
(fair value of lot/total fair value of all lots) x total purchase price
