西方财务-3

2020/9/171Chapter3AccountingforMerchandisingFirms2020/9/172MerchandisingFirmsMerchandisingfirmssellproductstoearnrevenue.Merchandisingfirmsbuygoodsforresale.Merchandisingfirmsmaybewholesalersorretailers.Examples:sportinggoods,clothing,andautopartsstores2020/9/173Feesearned$150,000Operatingexpenses120,000Netincome$30,000ServiceBusinessSalesrevenue$600,000Costofmdse.sold450,000Grossprofit$150,000Operatingexpenses120,000Netincome$30,000MerchandisingBusiness20%ofrevenues5%ofrevenues75%ofrevenuesIncomeStatementComparison2020/9/174ManufacturerWholesalerRetailerCustomerMerchandisingCompaniesMerchandisingActivities2020/9/175ClassifiedBalanceSheetAssetsCurrentassetsCash24,580$Accountsreceivable98,400Merchandiseinventory125,090Supplies4,700Prepaidinsurance6,800Totalcurrentassets259,570$PlantassetsLand75,000Building421,500$Less:accumulateddepreciation117,200304,300Equipment114,720Less:accumulateddepreciation41,90072,820Furnitureandfixtures62,800Less:accumulateddepreciation21,00041,800Totalplantassets493,920Totalassets753,490$LiabilitiesCurrentliabilitiesAccountspayable187,600$Wagespayable15,875Short-termbanknote25,000Totalcurrentliabilities228,475$Long-termnotespayable275,000EquityCommonstock200,000Retainedearnings50,015Totalliabilitiesandequity753,490$Toys-For-Kids,Inc.BalanceSheetDecember31,2002Merchandisingfirms2020/9/176OperatingCycleBeginswiththepurchaseofmerchandiseandendswiththecollectionofcashfromthesaleofmerchandise.2020/9/177OperatingCycle–CashSaleInventorySalePurchasesMerchandisefirms2020/9/178OperatingCycle–CreditSaleInventorySalePurchasesCollectionAccountsReceivable2020/9/179PerpetualPeriodicInventorySystems2020/9/1710PeriodicInventorySystems2020/9/1711Inventory++BeginninginventoryNetcostofpurchasesMerchandiseavailableforsaleEndingInventoryCostofGoodsSold2020/9/1712PeriodicInventorySystemPhysicallycountinventory,usuallyatendofaccountingperiod.Nodetailedrecordsoftheactualinventoryaremaintainedduringtheaccountingperiod.Lesscostlythanperpetualinventorymethod,butprovideslessinformation.Merchandisingfirmsthatsellmanyitemsoflowvalue,suchasgrocerystoresorbookstoresliketouseperiodicinventorymethod.2020/9/1713PeriodicInventoryMethodPurchasesAccts.PayableInventoryBIxxxxxxxxxPur.R&AxxxPur.Disc.xxxWhenInventoryisPurchasedTheInventoryAccountisnotupdatedwheninventoryispurchased.2020/9/1714PeriodicInventoryMethodEntryforpurchasingmerchandiseforresale:PurchasesCash(orAccountsPayable)SeeExample6onp81.2020/9/1715TransportationCostsFOBshippingpoint(buyerpays)FOBdestination(sellerpays)MerchandiseSellerBuyerTermsOwnershiptransferstobuyerwhengoodsarepassedtoTransportationcostspaidbyFOBshippingpointCarrierBuyerFOBdestinationBuyerSeller2020/9/1716TransportationCostsWhenpayfreightcosts:TransportationInCash(AccountsPayable)SeeExample7onp822020/9/1717PurchasereturnsandallowancesPurchaseReturn...Merchandisereturnedbythepurchasertothesupplier.PurchaseAllowance...Areductioninthecostofdefectivemerchandisereceivedbyapurchaserfromasupplier.2020/9/1718PurchaseReturnsandAllowancesEntriesforreceivingpurchasereturnsandallowancesfromsuppliers:Cash(AccountsPayable)PurchaseReturnsandAllowancesSeeExample8onp822020/9/1719PurchaseDiscountsTermsTimeDueDiscountPeriodFullamountlessdiscountCreditPeriodFullamountduePurchaseorSale2020/9/1720PurchaseDiscounts•Credittermsarestatedinexpressionssuchas:2/10,N/30,meaningthatadiscountof2%isallowediftheinvoiceispaidwithin10days;otherwisethefull(net)amountisduewithin30days.2020/9/1721PurchaseDiscountsPurchasediscounts:Adeductionfromtheinvoicepricegrantedtoinduceearlypaymentoftheamountdue.Entriestorecordpaymentindiscountperiod:AccountsPayableCashPurchaseDiscountsSeeExample9onp832020/9/1722NetPurchasesPurchasesLess:purchasediscountspurchasereturnsandallowances=netpurchases2020/9/1723PeriodicInventoryMethod-Merchandisesale-Entriesformerchandisesale:Cash(AccountsReceivable)SalesSeeExample1,2,3onp76,77-Entriesforsalesreturnsandallowances:SalesReturnsandAllowancesCash(AccountsReceivable)ReadExample4onp782020/9/1724PeriodicInventoryMethod-salesdiscountCashSalesDiscountsAccountsReceivableReadExample5onp79Netsales=Sales–SalesDiscounts–SalesReturnsandAllowances2020/9/1725AccountingforMerchandiseSalesMatrix,Inc.ComputationofGrossProfitForYearEndedDecember31,2005Sales2,451,000$Less:Salesdiscounts29,412$Salesreturnsandallowances18,50047,912Netsales2,403,088$Costofgoodssold(1,928,600)Grossprofit474,488$SalesdiscountsandreturnsandallowancesareContraRevenueaccounts.2020/9/1726CostofGoodsSold$132,660ComputationofCGSLess:EndingInventory48,300CostofGoodsAvailableforSale179,660NetPurchases126,860BeginningInventory$52,800ComponentAmountAdd:TransportationIn1,0002020/9/1727ItemizedCostofMerchandisePurchasedInvoicecostofmerchandisepurchases692,500$Less:Purchasediscounts(10,388)Purchasereturnsandallowances(4,275)Add:Costoftransportation-in4,895Totalcostofmerchandisepurchases682,732$Matrix,Inc.TotalCostofMerchandisePurchasesForYearEndedMay31,20052020/9/1728PerpetualInventorySystems2020/9/1729PerpetualInventorySyste