Merchandise
Transactions
Transactions
what is FOB destination?
Ownership of the goods remains with the seller until the goods reach their destination.
Sales - COGS= ?
Profit
what does LIFO, and FIFO stand for?
LIFO stands for Last In First Out and FIFO stands for First In First Out
An internal report prepared to verify the accuracy of both the bank statement and cash accounts of a business or individual is a
bank reconciliation
Signals a discrepancy between a company's reported figures?
Cash over short
What form of payment displays the customer's routing number and account number?
check
what dose operating expenses consist of?
All expenses including freight-out
Under the LIFO method what costs are including the ending inventory?
Including the oldest costs
On a bank reconciliation, the amount of an NSF check is
Deducted from the company's balance of cash
Cash short and over is identified as?
Expenses
What is a purchase return?
A purchase return is when a customer brings back a product they bought from a business, either for a refund or an exchange.
How do you determine Gross Profit?
Subtract Net Sales from cost of goods sold.
When costs are______,FIFO also produces the lowest______ and the highest net income.
Increasing
Cost of goods sold(COGS)
When cash is short, the entry to replenish petty cash includes a__________
debit to cash short and over
When cash is short, the entry to replenish pretty cash includes?
Debit to cash short and over
What does 2/10 mean?
A discount of 10 percent will be allowed if the invoice is paid within two days of the invoice date.
How do you find Income from Operations?
You subtract Operating Expenses from Gross Profit.
Under the FIFO method, a business has a 2 units on hand worth $200 as of July 1 and purchases 4 units at $250 each on July 7. On July 8,2 units are sold. what is the value of inventory on hand?
1,000
Explain what type of balance would appear in the Bank Statement if the Cash at Bank A/c in the Ledger of the business shows credit balance.
Debit
The amount of cash short and over are so small that they included as?
Other Expenses
A. Sold merchandise on account, $69,800 with terms 2/10,n/30. The cost of goods sold was $40,000
Accounts receivable: $68,404
Sales: $68,404
Cost of Goods Sold: $40,000
Inventory: $40,000
List of first five steps of a multiple step income statement
1. Sales
2.Net Sales
3. Cost of Goods Sold
4. Gross Profit
5.Operating Expenses
On May 1, Fernando's Furniture had a beginning inventory of 10 units costing $250 each. On May 14, Fernando's Furniture purchased 8 units costing $300 each. On May 15, Fernando's Furniture sold 13 units. What was the total costs of goods sold on May 15 if the FIFO method is used?
$3400
A check that was outstanding on last period's bank reconciliation was not among the cancelled checks returned by the bank this period. In preparing the bank reconciliation for this period, the amount of this check should be_________
Deducted from the bank balance of cash.
How does a cash over short happen?
simple human error