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Accounting test 3
accounting 1
| Question | Answer |
|---|---|
| COGS | expense of inventory; expense on imcome summary; temporary account |
| merchandise inventory | products that a company owns and intends to sell; Asset on balance sheet; permanent account |
| income statement for a merchandiser | Net sales- Cogs = gross profit Gross profit - expenses = net income |
| FOB shipping point | buyer pays for shipping (in inventory) legal term |
| FOB destination | seller pays for shipping legal term |
| 3/10, n/30 | 3= % discount /10 = days to get discount n/30= has to be paid in 30 days |
| Sales Discount | Normally has a debit balance because its a Contr Revenue |
| Returns and Allowances | Normally has a debit balance because its a Contra Revenue |
| lower-of-cost-market basis of accounting for inventories | its what ever is lower.. cost or market |
| Weighted average | TC/ total units = 0000 x amount actually sold = COGS |
| Gross Profit Rate | GP/net sales |
| Gross Profit | Net Sales -COGS |
| Ending inventory | TC - cogs |
| multi step income statement | sales(CR) sales discount(dr) Returns and Allowances (DR) ==== (-) Sales = NET SALES NETSALES - COGS = GROSS PROFIT GP - (Sales expenses + Admin expense) = Net Imcome |
| Purchase with discounts | D-Inventory; Cr- A/P |
| Paid back before end date | D-A/P C-Inventory(discount amount) C-Cash-leftover amount |
| Sold merchandise with discount | D-COGS C-Inventory D-A/R C-Sales |
| Getting a return | D-R&A(amt returned) C-A/R D-Inventory(amt it cost us) C-COGS |
| Returning something | D-inventory C-A/P |
| Paid back with discount | D-Cash(amt-discount) D-Sales discount C-A/R |
| Deposits in Transit | Add to Bank |
| Bank incorrectly recorded check for less than it actually was | Deduct from bank |
| Intrest on checking account | Add to book (Debit) |
| Bank service charges | Deduct from book (credit) |
| Outstanding chekcs | Deduct from bank Outstanding checks |
| Bank credit memorandum | Add to book(Debit)credit memo |
| Bank collected $$ note for the depositer | Add to book (debit)deposit collected by bank |
| Bank printed checks for the depositer for a fee | Deduct from book (credit) |
| NSF Check | Decuct from book (Credit)NSF Check |
| Gross profit method to find goods available for sale | Beginning inventory + Merchandise purchases |
| Gross profit method for net sales | Sales- (Discount+R&A) |
| GPM for estimated COGS | Net sales x (1.0-GRP) = estimated COGS |
| GPM for estimate of the final ending inventory | Goods available for sale- estimated COGS= ending inventory |
| Bank reconciliation beginning balances | Bank statement= begin bank bal Cash account bal=book begin bal |
| something placed in overnight depository(reciepts)but did not appear on bank statement | add to bank(Deposit in transit) |
| debit memorandum | Deduct from book(Cr)(debit memo) |
| note collected by bank & deposited in account | Add to book(deposit collected by bank) |
| Check drawn on another company (cancelled checks) | Error check(add to bank0 |
Created by:
kolby19
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