Financial Stmts
This financial statement reports revenues & expenses
What is the Income Statement?
Right side of a T-account
What is Credit?
This is debited when a service is "on account"
What is Accounts Receivable?
Entry to record income earned, but cash not yet received
Inventory cost flows to this expense
What is Cost of Goods Sold (COGS)?
In the accounting equation, what the owners' owe.
What are liabilities?
Every journal entry needs a minimum of this many accounts.
What is two?
Revenue - Expenses =
What is Net income?
Allowance for Bad Debts is classified on the B/S as
What is a contra-current asset?
Purchase merchandise on account results in
What is Dr. inventory increase assets, Cr. A/P increase liabilities?
Inventory, Accounts Receivable, Cash
What are Current Assets?
Credits increase this account type
What is Revenue or Liability, or Equity?
When inventory is purchased on account, these accounts are affected
What is increase (Dr.) Inventory Assets and increase (Cr.) A/P liabilities?
A/R and Allowance for Bad Debts is reported as
What is Net Accounts Receivables?
This is the most common method of inventory cost flow
Cumulative Net Income less Dividends paid
What is Retained Earnings?
To increase Accounts Payable you need to
What is Credit?
Transactions are first recorded in this
What is a journal entry?
Effect of a write-off on total current assets
What is no effect?
Entry to record depreciation expense
What is Dr. Depreciation Expense, Cr. Accumulated Depreciation
Assets 3,000 Liabilities 1,000 Equity X
What is $1,000?
To increase supplies expense, you need to
What is Debit?
Beginning R/E 4,000 Net income $1,000 Dividends $500. Ending R/E?
What is $4,500?
Entry to record estimated $2,000 uncollectible A/R
What is Debit Bad Debt Expense, Credit Allowance for Bad Debts?
Accounting principle to record revenue when earned and expenses when incurred
What is the matching principle?