FAR Formulas Area BS Accounts Flashcards
Adjusted GL Balance
From Bank statement to GL
Bank Statement Balance + Deposits in Transit - Outstanding Checks
Adjusted GL Balance
From GL to Bank statement
GL Balance - Bank Charges - NSF Check
A/R Rollforward formula
Beginning Balance + Credit Sales - Collections - Write-Offs = Ending Balance
+ Recoveries, but then removed when cash is paid (JE Cash / A/R)
Allowance for doubtful accounts Rollforward formula
Beginning Balance + Bad Debt Expense - Write-Offs + Recoveries = Ending Balance
Present Value of a Note (PV)
PV = Maturity Value / (1 + r)^n
COGS Formula
Beginning Inventory + Purchases − Ending Inventory
Ending Inventory at Base-Year Cost
(Ending Inventory at Current Year Cost) / Price Index
New LIFO Layer
Ending Inventory at Base Year Cost − Beginning Inventory at Base Year Cost) * Price Index
Formula Ending Inventory under Dollar-Value LIFO
Beginning Inventory + New LIFO Layer
Average Cost Method (for COGS)
Average cost per unit Formula
(Total Cost of Beginning Inventory + Purchases) / Total Units Available for Sale
COGS = Average Cost per Unit * Number of Units Sold
Formulas include Beginning Balances + Purchases excl ending balances
Ceiling (NRV) Formula
Estimated Selling Price − Cost to Complete/Dispose
Floor (Under LIFO)
Net Realizable Value − Normal Profit Margin
Cost - to - Retail Ratio
(Cost of Inventory + Cost of Purchases) / (Retail Value of Inventory + Retail Value of Purchases + Markup(Net)
Ending Inventory at Retail
Beginning Retail Inventory + Purchases at Retail − Sales - Normal Losses - Markdowns
Ending Inventory at Cost
Ending Inventory at Retail * Cost-to-Retail Ratio
