会计学英语电子版课件05.ppt

Study Objectives Identify the difference between a service enterprise and a merchandising company. Explain the recording of purchases under a perpetual inventory system. Explain the recording of sales revenues under a perpetual inventory system. Distinguish between a single-step and a multiple-step income statement. Study Objectives Determine cost of goods sold under a periodic system. Explain the factors affecting profitability. Appendix- Explain the recording of purchases and sales of inventory under a periodic inventory system. Operating Cycles Merchandise Inventory Includes all purchases of merchandise for re-sale to customers and costs to get it to the business Does not include items purchased for use and not for resale If an entity sells cash registers, then the cash registers it buys to re-sell would be inventory- ones used to ring-up sales for the business would be recorded as equipment Purchase Returns and Allowances Freight Costs… On incoming goods you purchase are charged to inventory. On outgoing goods you sell are an operating expense to the seller. Freight Cost Incurred by Buyer Purchase Discounts Credit terms may allow buyer to claim a cash discount if payment is made within a certain specified time Purchaser saves money and seller converts account receivable to cash faster Purchase Discounts Credit terms may be written“2/10, net 30” which means 2% cash discount if paid within 10 days of invoice date, otherwise pay the full amount within 30 days Purchase Discounts Purchase Discounts Summary of Purchasing Transactions – Perpetual System Review Review Review Review Review Review Recording Sales Under Perpetual Inventory System Sales revenues recorded when goods are transferred from the seller to the buyer Follows revenue recognition principle Every purchase should be supported by business documents, i.e., cash register tape or sales invoice Recording Sales Under Perpetual Inventory System Sales Returns and Allowances- flip side of Purchase R