Transaction
Analysis
Analysis
Purchase merchandise for cash
Debit Merchandise Inventory
Credit Cash
Markup
Amount added to cost to determine selling price
Sales tax in MA if sell $1000 worth of taxable goods
$62.50
What type of account is
Cost of Merchandise Sold
Cost
What actress was recently arrested for the college admissions scam?
Lori Loughlin
Felicity Huffman
Sell merchandise on account
Debit Accounts Receivable
Credit Sales
Debit Cost of Merchandise Sold
Credit Merchandise Inventory
Merchandising partnership?
Business that buys and sells finished goods, and is owned by two or more people
Calculate owner's share of the profit if..
Rob invests $500
Greg invests $1,500
Rob 25%
Greg 75%
Advantage:
Disadvantage:
What type of accounts are Sales Discount and Sales Returns & Allowances?
Contra Revenue
Purchase merchandise on account
Debit Merchandise Inventory
Credit Accounts Payable
Cost of Merchandise
The price paid for the goods a company buys to sell
Calculate the Purchase Discount if purchase was $5,000; return was $1,000; terms of sale are 4/15, n/30
$160
Record allowance for a customer who had not paid yet
Debit Sales Returns and Allowances
Credit Accounts Receivable
What classic Disney movie is being re-made and released this month?
Dumbo
Received cash on account from a customer, less discount
Debit Cash
Debit Sales Discount
Credit Accounts Receivable
Tax exempt
Tax free
Calculate Sales Discount if
Sales is $10,000
Return is $4,000
Terms 2/10, n/30
$120
What does a partnership agreement do?
Sets out the conditions under which the partnership will exist
What is the name of the vehicle Scooby Doo and his friends travel around in?
Mystery Machine
Paid on account, less discount and return
Debit Accounts Payable
Credit Merchandise Inventory
Credit Cash
Invoice
Document that records amount purchased or sold (quantity, price, etc.)
Calculate Sales Discount if:
Sales $5,000
Return $1,000
Allowance $500
Discount terms 5/10, n/30
$175
How are the Income Statement and Balance Sheet affected by a Sales Return if the customer had not paid yet?
Revenue decreased
Cost of Merchandise decreased
Assets decreased (A/R) and increased (inventory); decrease more than increase
If you have arachnophobia, what are you afraid of?
spiders