Financial Statements
Sales
- Sales Discounts
- Sales Returns and Allowances
What is Net Sales?
FIFO
What is First in, First out?
Calculating Net realizable Value
What is Account receivable - estimated uncollectables?
5/20 and n/60 are examples of? (explain)
What is credit terms?
When using the Perpetual inventory ledger the first thing you do is rewrite beginning inventory.
What is yes, always write beginning inventory before calculating the sale/ purchase of merchandise?
Net Sales
- Cost of Goods Sold
What is Gross Profit?
LIFO
What is Last in, First Out?
The balance in the Allowance account is a credit. How do you determine the amount for the adjusting entry?
What is Total Estimated Uncollectibles - The Credit Balance
What accounts are used to explain the beginning SALE of merchandise? (FOB Destination)
What is
Dr A/R
Cr Sales
Dr Cost of Goods Sold
Cr Inventory
Dr Delivery Expense
Cr Cash
What 2 spots do you update in the perpetual inventory ledger for a purchase?
What is purchases and inventory?
Gross Profit
- Operating Expenses
What is Income from Operations?
Calculate Units available for sale
What is beginning inventory + purchases?
The balance in the Allowance account is a debit. How do you determine the amount for the adjusting entry?
What is the Total Estimated Uncollectibles + The Debit Balance
What accounts are used to explain the beginning PURCHASE of merchandise? (FOB Shipping)
What is
Dr Inventory
Cr A/P
Dr Inventory
Cr Cash
What 2 spots do you update in the perpetual inventory ledger for a sale?
What is Cost of Goods Sold and Inventory?
Income from Operations
- Non Operating Loss/Expense
+Non Operating Gains/ Revenue
What is Net Income?
Calculate ending inventory
What is Cost of units Available for Sale - Cost of Goods Sold?
The amount of a write off is less than the company's estimated uncollectibles. Does Net realizable Value change?
What accounts are used to explain a return? (buyer)
What is
Dr A/P
Cr Inventory
What accounts are used when preparing the LCM adjustment?
What is
Dr Cost of Goods Sold
Cr Inventory
List the other 5 numbers for multiple step income statements and how to find them.
What is current assets, liabilities, total assets, liabilities, and equity.
Assume Vanilla purchased 1500 additional units on July 28th. The purchase was FOB shipping and the goods were in transit as of July 31st. Would this additional information change their month end inventory?
What is yes, in an FOB shipping transaction the units belong to the buyer once they are in transit?
The accounts used to update the balance in the Allowance account
What is
Dr Bad Debt Expense
Cr Allowance for Doubtful Accounts
What accounts are used to explain the payment for merchandise with a discount? (seller)
What is
Dr Cash
Dr Sales Discounts
Cr A/R
Calculate the number for the LCM adjustment
What is the difference between the Cost values that are higher than the market values?