Otherwise, you have to pay a penalty of one thousand pesos PhP 1, Depending upon prevailing interest rates, merchandisers may offer a discount if their customer pays early. Or use it to upload your own PowerPoint slides so you can share them with your teachers, class, students, bosses, employees, customers, potential investors or the world.
Subtract the cost of goods on hand at the end of the accounting period. The journal entry would be: Since the inventory records show the quantities that should be on hand, the company can count the goods at any time to see whether the amount of goods actually on hand agrees with the inventory records.
One of our resources told us that a penalty of twenty-five thousand to fifty thousand pesos PhP 25, to PhP 50, will be imposed. Ending inventory determined by physical count. However, a new update sent out last August 13, Revenue Memorandum Circular clarified the usage of all unused receipts principal and supplementary.
A new ATP was already issued to you on or before August 30, Similarly, we can offer terms to our customers. Therefore, unless there has been a theft or unrecorded loss of some units of inventory, the Inventory account should reflect the current cost of inventory on hand.
Thus, FOB shipping point means that the seller places the goods free on board the carrier, and the buyer pays the freight costs. Or use it to find and download high-quality how-to PowerPoint ppt presentations with illustrated or animated slides that will teach you how to do something new, also for free.
Add to it the cost of goods purchased.
Although a perpetual inventory system requires additional clerical work and additional cost to maintain the subsidiary records, a computerized system can minimize this cost. There is truly something for everyone! You might think of this situation as an "unsale" of the goods; both the Sale is reversed by the debit to Sales Returns and Allowances and the cost of the sold inventory is moved from Cost of Goods Sold back into the Inventory account.
This is the format for a multiple step income statement. The first entry is a debit to Accounts Receivable and a credit to Sales. If you do not get this done by June 30, a penalty will be imposed.
The "perpetual" refers to the fact that every purchase of inventory is debited to the Inventory account; likewise, every sale of inventory is credited to the Inventory account. Usually it take 3 to 5 working days before it will release. The general format of this statement is as follows: This form of statement appears on page in Illustration The letters FOB mean free on board.
Learning Objectives A productive approach to Chapter 5 is as follows: The perpetual inventory system is so named because the accounting records continuously—perpetually—show the quantity and cost of the inventory that should be on hand at any time.
Do not wait until you reach beyond June However, if the returned items can be resold, they must be put back in the Inventory account at our costas follows: Cost of Goods Sold is the cost of the inventory that was sold, and is often the major cost of a merchandising company.
Accounting for Merchandising Operations In Chaptersall text examples were ones involving service businesses. Closing Entries for Merchandising Going back to the T-accounts for the Perpetual Inventory method, the closing entries would be journalized as follows: A purchase invoice should support each credit purchase.
Inventory is a current asset. Photocopy it, then you are good to go. The periodic inventory system; The perpetual inventory system. If freight charges are paid on incoming merchandise, such charges are just added to the inventory cost.
The second entry is a debit to Cost of Goods Sold and a credit to the Inventory account. Whether your application is business, how-to, education, medicine, school, church, sales, marketing, online training or just for fun, PowerShow. Determining Cost of Goods Sold Under a Periodic System Separate accounts used to record purchases, freight costs, returns, and discounts.
An example of a merchandising Income Statement appears in Illustration on page If a customer returns goods to us, such goods are considered a Sales Return.FUNDAMENTALS OF FINANCIAL ACCOUNTING ACCT SPRING SEMESTER Professor: Dr.
Laura Muro Office: 12 Feb 18 Quiz Chapter 4 Ch 5: Merchandising Operations and the Multiple-Step Income Statement Wed, 14 Feb 18 Ch 5. CHAPTER 5 Accounting for Merchandising Operations ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Distinguish between a multiple-step and a single- step income statement.
Q The single-step income statement differs from the multiple-step income statement in that: (1) all data. (L.O. 5) A multiple-step income statement shows several steps in determining net income: (1) cost of goods sold is subtracted from net sales to determine gross profit and (2) operating expenses are deducted from gross profit to determine net income.
CHAPTER 5. Merchandising Operations. Study Objectives. Distinguish between a single-step and a multiple-step income statement. Determine the cost of goods sold under a periodic inventory system.
Explain the factors affecting the profitability. Chapter Outline. Study Objective 1 - Identify the Differences Between a Service Enterprise and. journalized and posted. Preparation of the financial statements is discussed, emphasizing the classifications on the income statement.
The multi-step and single-step income statement formats are compared. The gross profit percentage and the inventory turnover and ways to use these ratios in decision making complete the chapter. Answer to Chapter 5 Accounting for Merchandising Businesses PR A Multiple-step income statement and balance sheet Obj.