Operating Cycle
What is the Operating Cycle of a Merchandiser with credit sales?
What is cash purchases of merchandise to inventory for sale to credit sales to accounts receivable to cash.
How do you compute Net Income for a Merchandiser?
What is Net sales minus COGS equals Gross Profit minus Expenses equals Net Income.
On Nov 2, Z mart purchased $500 of Merchandise inventory for cash. What does that journal entry look like?
What is debit merchandise inventory $500, and credit Cash $500?
How do you compute the Acid test ratio?
What is Quick assets over Current Liabilities?
Why do sellers grant cash discounts?
What is to encourage buyers to pay earlier?
Net Purchases and Beginning Inventory equal what?
What is Merchandise available for sale?
What is COGS and Ending Inventory?
What are the steps to close entries for Merchandisers?
What is close credit balances to income summary, close debit balances to Income summary, Close income summary to retained earnings, and close dividends?
Z-Mart purchased merchandise on terms of FOB Shipping point. The transportation cost is $75. What would the journal entry be?
What is debit Merchandise Inventory $75 and credit Cash $75?
Sales discounts are $1,500, Sales returns and allowances are $4,000, Net Sales are $35,000, and Gross Profit is $13,000. Compute Sales and COGS.
What is Sales are $40,500 and COGS are $22,000?
Sales - SD - SRA = Net Sales - COGS = Gross Profit
Quick assets refer to what?
COGS is reported on the?
What is the Income Statement?
What are the three main parts of a multi step income statement?
What is Gross profits, income from operations, and net income?
Z Mart sold $1,000 of Merchandise on credit. The Merchandise has a cost basis to Z Mart of $300.What are the journal entries to the revenue side and the Cost side?
What is debit AR $1,000 and COGS $300, and credit Sales $1,000 and MI $300?
Lennox had Net Sales of $526,500 and Gross profit of $196,911. Compute COGS.
What is $329,589?
Who is responsible for the goods in transit with FOB Shipping Point?
What is the Buyer?
Name the 2 Inventory Systems.
What is Perpetual and Periodic system?
What does the balance sheet report Merchandise Inventory as?
What is Current Assets?
Customer returns merchandise which sold for $15 and cost $9. What are the journal entries made?
What is debit Sales return and allowances $15 and MI 9 and credit Cash $15 and COGS $9?
Carrier had Sales for $150,000, Sales discounts for $5,000, Sales return and allowances for $20,000, and COGS for $79,750. Compute Carriers Gross Margin ratio.
What is 36.2%?
What does the second number represent 2/10, n/30?
What is the discount period?
Updating accounting records for purchases and sales of inventory at the end of a period is known as?
What is Periodic inventory system updating?
Operating Expense, in a multi step income statement, are separated into what 2 sections?
What is Selling Expenses and General & Administrative expenses?
If Z Mart Inventory account has a balance of $21,250, but a physical count reveal's that only $21,000 exist. What entry needs to be made?
What is Debit COGS $250 and credit Merchandise Inventory $250?.
This is called Shrinkage.
York had Gross Margin ration of 49.4%, COGS of $126,500, and Gross Profit of $123,500. Compute Net Sales.
What is $250,000?
Name 5 things that need to appear on an Invoice?
What are: Seller, Invoice date, Purchaser, Order Date, Credit Terms, Freight Terms, Goods, Total Invoice Amount, Net Amount?