žAccounting
for Sales
žService
Business
•provides service for a fee
žMerchandising
Business
•buys goods, then resells for profit
žTwo
Types of Merchandisers
žRetailer
•sells to the final user
žWholesaler
•sells to retailers
žOperating
Cycle of a Merchandiser
1.Purchase
of Goods for Resale
2.Sale
of Goods
•for cash
•on Account
3.Receive Cash
•profit
•pay expenses
žMerchandise
Inventory Account
žMerchandise
•goods bought for resale
žInventory
•merchandise that is in stock
žMerchandise
Inventory
•asset account that is adjusted only at
the end of the period
ž
žSales
žrevenue account that is credited when
merchandise is sold
• if cash sale
–Dr.
Cash in Bank and Cr. Sales
•if sale on account
–Dr.
A/R and Cr. Sales
žProblem 14-1
žApr.
4:
•Sold cameras on account for $3,000,
Sales Slip 224
žApr.
10:
•Sold photo albums for $150 cash,
Sales Slip 225
žApr.
20:
•Sold rolls of film for $24 cash,
Sales Slip 226
žApr.
25:
•Sold camera for $380 cash, Sales
Slip 227
žAnalyzing Sales Transactions
žThe
most frequent transactions in a merchandising business
•cash sale of merchandise
–retailers
•sale of merchandise on account
–wholesalers
and manufacturers
žSale on Account
•sale of merchandise that will be paid for
later
–(aka:
charge sale, credit sale)
žCharge Customer
žthe
person to whom a charge sale is made
žCredit
Cards
žissued
by business to charge customers
•for making purchases on account
žSears,
Macy’s, Mobil
ž
žBank
Cards
žissued
by a bank to individuals to make purchases
•treat like cash
–bank
pays business right away
žVisa, MasterCard
žThe Sales Slip
žform
that lists details of credit sale
žsource document for transaction
žpre-numbered
slips help businesses stay organized
žSales Tax Payable Account
žmost
states and some cities tax retail sales
žtax
paid by customer, collected by business, & forwarded to government
žcollected
sales taxes are liabilities
žsome
entities (like schools) are exempt from sales tax
ž
No comments:
Post a Comment