怀尔德《会计学原理》Chapter-05.pptVIP

* If we look at the accounts after posting the payment entry, we can see that the current balance in Accounts Payable is zero, indicating that the total liability has been satisfied. We can also see that the current balance of $1,176 in the Merchandise Inventory account reflects the actual cash price of the merchandise purchased. * In addition to purchase discounts, merchandisers also have to deal with returns of inventory and allowances. A purchase return is the return of merchandise by the purchaser to the supplier. An allowance is a price reduction granted to the customer because of some quality issue. An allowance may be given because of a slight defect in the merchandise or because a shipment was late. In these cases, the customer keeps the merchandise and just receives a price reduction as the allowance. * Let’s look at an example and see how purchase returns and allowances are recorded. On November 2nd, Z-Mart purchased $1,200 of merchandise inventory on account, credit terms are 2/10, n/30. As before, we debit Merchandise Inventory and credit Accounts Payable for $1,200. * What would be the entry On November 5th, if Z-Mart returned $300 of defective merchandise to the supplier? The entry would include a debit to Accounts Payable and a credit to Merchandise Inventory for $300 to reduce each account. * On November 12th, Z-Mart paid the amount owed for the purchase of November 2nd. In this case, Z-Mart can take a purchase discount of 2% on the amount due of $900. The entry would include a debit to Accounts Payable for the total due of $900, a credit to Cash for $882 which is the amount due less the discount, and a credit to Merchandise Inventory for $18, which is the amount of the discount. * Transportation costs are sometimes included in the cost of Merchandise Inventory. For example, when buyers pay transportation costs to get merchandise inventory to them, the transportation costs are included in the Merchandise Inventory cost. FOB terms designate when