Sales Entries
What two Accounts are to be Debited for a company when merchandise is sold?
Cash/Accounts Receivable and Cost of Goods Sold.
This Account is Debited when your company purchases Inventory
Merchandise Inventory.
Under what category on the balance sheet is Merchandise Inventory
Current Assets
What type of Income statement contains only Revenues and Expenses?
Single-step Income Statement.
These three Accounts are affected to journalize a Sales Discount
Sales Discounts(Dr) Cash(Dr) Accounts Receivable(Cr)
In the credit terms of 3/15, n/60, the “15” represents What?
Number of days in the discount period
Which Accounting Method assumes the oldest inventory items are sold first
FIFO (First in First Out)
What equation calculates Gross Profit
Net Sales less Cost of Goods Sold.
The Journal Entry to record Saleable Merchandise after a sales return.
Dr-Merchandise Inventory Cr-Cost of Goods Sold.
When Purchasing products from Frank company on account for $50,000 2/10 n/30
And you pay the amount 6 days later, what amount do you credit cash when the invoice is paid?
$49,000
Merchandise Inventory appears under what category on a classified balance sheet
Current Assets
Profit from operations appears on Which type of Financial Statement?
Multi-step income statement.
The Journal Entry to Record a sale to a customer on account, Cost of Goods Sold=$18000, Sales Price=$22000, Freight=$600, FOB Shipping Point
Dr. Accounts Recievable $22000 Cr. Sales $22000
Dr.Cost of Goods Sold $18000 Cr.Merchandise Inventory $18000
Fill in the Blank of the Journal Entry of Gregs Companies books
Feb 1st
Gregs Company bought $13,000 with terms 5/10 n/30 of product from Shane’s Company on account
Feb 5th
Greg's company paid the invoice for the Feb 1st Purchase
Journal Entries:
Feb 1st
Dr.Merchandise Inventory $13,000 Cr. Payable $13,000
Feb 5th
Dr. Accounts Payable $13,000 Cr. Cash $12,350
Cr. _______ $______
Cr. Merchandise Inventory $650
What is the term for the inventory costing method in which the cost of goods sold are based on an average of the cost of all goods available for sale?
Weighted Average Cost Method
What 5 main steps are included in a multi-step income statement?
Net Sales, Gross Profit, Profit from Operations, Non-Operating Activities, Profit.