[管理学]会计学horngren_acct7_ch05-2.ppt

Sporting Store Example Assume that on May 11 the store sold merchandise costing $1,800 for $2,600 in cash. What are the journal entries? Sporting Store Example Sporting Store Example On May 15, the store sold to Maria Gym $5,000 worth of merchandise with a cost of $3,000. Terms are 2/10, N/30. Sporting Store Example Sales Discounts and Sales Returns and Allowances Example On May 17, Maria Gym returned $1,500 worth of goods that cost $900. In addition, a credit of $100 was allowed for merchandise that was damaged. What are the journal entries? Sales Discounts and Sales Returns and Allowances Example Sales Discounts and Sales Returns and Allowances Example There is no entry required for inventory since the goods were not returned. Sales Discounts and Sales Returns and Allowances Example On May 20, the store received a check from Maria Gym for the balance due. What is the balance due? Sales Discounts and Sales Returns and Allowances Example Maria took advantage of the sales terms – 2/10, N/30. STATEMENT OF RETAINED EARNINGS: A merchandiser’s statement of retained earnings looks exactly like that of a service business. BALANCE SHEET: For a merchandiser, the balance sheet is the same as for a service business, except merchandisers have an additional current asset, Inventory. Service businesses have no inventory. * * There are two formats for the income statement: A multi-step income statement lists several important subtotals. In addition to net income (the bottom line), it also reports subtotals for gross profit and income from operations. The multi-step format is more popular The single-step income statement groups all revenues together and all expenses together without drawing other subtotals. Many companies use this format. The single-step format clearly distinguishes revenues from expenses and works well for service entities because they have no gross profit to report. * The sixth learning objective is to use gross profit percentage and inventory tu