This website uses cookies to ensure you have the best experience. Learn more

Acc 206 Week 3 Essay

1934 words - 8 pages

Decision Cases
Case 1. Assume you are opening a Bed Bath & Beyond store. To finance the business, you need a $500,000 loan, and your banker requires a set of forecasted financial statements. Assume you are preparing the statements and must make some decisions about how to do the accounting for the business. Answer the following questions (refer back to Chapter 5 if necessary):
1. Which type of inventory system will you use? Give your reason. (p. 255) Inventory Systems: Perpetual and Periodic
There are two main types of inventory accounting systems:
• Periodic system
• Perpetual system
2. Show how to compute net purchases and net sales. How will you treat the cost of transportation-in? ...view middle of the document...

• A sales discount: If the customer pays within the discount period—under terms such as 2/10, n/30—Austin Sound collects the discounted amount.
• Freight out: Austin Sound may have to pay delivery expense to transport the goods to the buyer.
Let’s begin with a cash sale.
Cash Sale
Sales of retailers, such as Austin Sound, grocery stores, and Old Navy, are often for cash. Suppose Austin Sound made a $3,000 cash sale and issued the sales invoice in Exhibit 5-5.
EXHIBIT 5-5 Sales Invoice

Cash sales of $3,000 are recorded by debiting Cash and crediting Sales Revenue as follows:

Austin Sound sold goods and, therefore, must decrease the Inventory balance. Suppose these goods cost Austin $1,900. A second journal entry is needed to transfer the $1,900 cost of the goods from the Inventory account to Cost of Goods Sold, as follows:

The Cost of Goods Sold account keeps a current balance throughout the period. In this example, cost of goods sold is not $3,000, because that’s the selling price of the goods. Cost of goods sold is always based on the entity’s cost, not the selling price.
After posting, the Cost of Goods Sold account holds the cost of the inventory sold ($1,900 in this case):

The computer automatically records the cost of goods sold entry. The cashier scans the bar code on the product and the computer performs this task.
Sale on Account
Most sales in the United States are made on account (on credit). A $5,000 sale on account is recorded as follows:

These goods cost the seller $2,900, so the related cost of goods sold entry is:

When the cash comes in, the seller records the cash receipt on account as follows:

Sales Discounts and Sales Returns and Allowances
In Class Tip
•These contra-revenue accounts must always be recorded as a debit.
We saw that purchase returns and allowances and purchase discounts decrease the cost of inventory purchases. In the same way, sales returns and allowances and sales discounts decrease the net amount of revenue earned on sales. Sales Returns and Allowances and Sales Discounts are contra accounts to Sales Revenue.
Sales Revenue −Sales Returns and Allowances −Sales Discounts = Net Sales Revenue1
Companies maintain separate accounts for Sales Discounts and Sales Returns and Allowances. Now let’s examine a sequence of JDC sale transactions. Assume JDC is selling to Austin Sound Center.
On July 7, JDC sells stereo components for $7,200 on credit terms of 2/10, n/30. These goods cost JDC $4,700. JDC’s entries to record this credit sale and the related cost of goods sold are:

1Often abbreviated as Net sales.
SALES RETURNS
Assume that the buyer returns $600 of the goods. JDC, the seller, records the sales return as follows:

Accounts Receivable decreases because JDC will not collect cash for the returned goods.
JDC receives the returned merchandise and updates its inventory records. JDC must also decrease Cost of Goods Sold as follows (the returned goods cost JDC $400):...

Other Papers Like Acc 206 Week 3

Acc 306 Week 1 E13-22 Woodmier Lawn Products

438 words - 2 pages Products.doc ACC 306 Week 1 P12-1 - Fuzzy Monkey Technologies, Inc..doc ACC 306 Week 1 P13-6 - Eastern Manufacturing.doc ACC 306 Week 2 E 14-18 - American Food Services, Inc..doc ACC 306 Week 2 E14-16 - Wilkins Food Products, Inc..doc ACC 306 Week 2 E15-25 Concepts terminology.doc ACC 306 Week 2 Ethics Case 14-8 - Hunt Manufacturing.doc ACC 306 Week 2 Ethics Case 15-4.doc ACC 306 Week 2 P 15-3 Rand Medical.doc ACC 306

ACC 548 Complete Course Material Essay

1359 words - 6 pages ACC 548 Complete Course Material Follow Link Below To Get Tutorial homeworklance.us/downloads/acc-548-complete-course-material-hl/ Description: ACC 548 Week 1 Individual Assignment Comprehensive Annual Financial Report Briefing ACC 548 Week 2 Learning Team Assignment Text Problem Sets ACC 548 Week 3 Individual Assignment Text Problem Sets ACC 548 Week 4 Individual Assignment Comprehensive Annual Financial Report Presentation ACC

Acc 561 Final Exam Latest Uop Course Assignments

1723 words - 7 pages Week 1 DQ 2 ACC 561 Week 1 Quiz (Latest) ACC 561 Week 1 WileyPLUS Assignment ACC 561 Week 1 Financial Statement Review ACC 561 Week 1 Complete ACC 561 Week 2 DQ 1 ACC 561 Week 2 DQ 2 ACC 561 Week 2 Quiz (Latest) ACC 561 Week 2 Ratio Analysis Assignment ACC 561 Week 2 Financial Statement Analysis ACC 561 Week 2 Complete ACC 561 Week 3 DQ 1 ACC 561 Week 3 DQ 2 ACC 561 Week 3 Quiz (Latest) ACC 561 Week 3 Costing Systems Assessment ACC

Acc 561 Final Exam Latest Uop Assignments

1697 words - 7 pages quiz answers here ACC 561 Week 3 Quiz (Latest) 40. Activity-based costing • allocates overhead to multiple activity cost pools, and it then assigns the activity cost pools to products and services by means of cost drivers. • assigns activity cost pools to products and services, then allocates overhead back to the activity cost pools. • accumulates overhead in one cost pool, then assigns the overhead to products and services by means of a

Acc 561 Final Exam Latest University of Phoenix Tutoring

1680 words - 7 pages with the highest value down to the lowest value. • as a percent of the item in the previous year. 41. Process costing is used when • the production process is continuous. • costs are to be assigned to specific jobs. • production is aimed at filling a specific customer order. • dissimilar products are involved. To download the complete answer check ACC 561 Week 3 Complete 43. An important feature of a job order cost system is that each

Acc 561 Final Exam Latest University of Phoenix Final Exam Study Guide

1674 words - 7 pages ACC 561 Week 2 Complete ACC 561 Week 3 DQ 1 ACC 561 Week 3 DQ 2 ACC 561 Week 3 Quiz (Latest) ACC 561 Week 3 Costing Systems Assessment ACC 561 Week 3 Learning Team Assignment ACC 561 Week 3 Complete ACC 561 Week 4 DQ 1 ACC 561 Week 4 DQ 2 ACC 561 Week 4 Quiz (Latest) ACC 561 Week 4 WileyPLUS Assignment ACC 561 Week 4 Learning Team Reflection ACC 561 Week 4 Complete ACC 561 Week 5 DQ 1 ACC 561 Week 5 DQ 2 ACC 561 Week 5 Quiz (Latest

Fgvsdgsdg

1037 words - 5 pages . Complete the following exercises from Chapter 10 11 and submit them to the instructor by the end of Day 3. This assignment will be graded as a completion only. The instructor will post the answers to these exercises by the end of Day 5 for you to check your accuracy and comprehension of the subject matter. Exercises: 10-1, 10-3, 10-6, 11-1, 11-6, 11-15. ACC 202 Week 1 Assignment Week One Problems Week One Problems. Complete the

IT 206 UOP Tutorial / it206dotcom

955 words - 4 pages IT 206 Entire Course IT 206 Week 1 CheckPoint Formatting Issues IT 206 Week 1 DQ 1 and DQ 2 IT 206 Week 2 CheckPoint Knowing Where You Placed Your Document IT 206 week 2 Assignment Microsoft Word Exercise IT 206 Week 3 CheckPoint Simplifying Your Excel Usage IT 206 week 3 DQ 1 and DQ 2 IT 206 Week 4 CheckPoint The Risk of Macros IT 206 Week 4 Assignment Microsoft Excel Exercise IT 206 Week 5 CheckPoint Mail Merging IT 206 Week 5 DQ 1

Uop Acc 291 Final Exam Homework Help

2434 words - 10 pages Exam. The author is working in the field of education from last 5 years. This article covers the basic of ACC 291 Final Exam Assignment from UOP. Other topics in the class are as follows: ACC 291 WEEK 1 DQ 1 (WITH 3 RESPONSES) ACC 291 WEEK 1 DQ 2 (WITH 3 RESPONSES) ACC 291 WEEK 1 COMPLETE ACC 291 Week 2 DQ 1 (With 3 Responses) ACC 291 Week 2 DQ 2 (With 3 Responses) ACC 291 Week 2 WileyPLUS ACC 291 Week 2 Complete ACC 291

Acc 291 Final Exam Latest Uop Material

2455 words - 10 pages field of education from last 5 years. This article covers the basic of ACC 291 Final Exam Assignment from UOP. Other topics in the class are as follows: ACC 291 Week 1 DQ 1 (With 3 Responses) ACC 291 Week 1 DQ 2 (With 3 Responses) ACC 291 Week 1 Complete ACC 291 Week 2 DQ 1 (With 3 Responses) ACC 291 Week 2 DQ 2 (With 3 Responses) ACC 291 Week 2 WileyPLUS ACC 291 Week 2 Complete ACC 291 Week 3 DQ 1 (With 3

Acc 291 Final Exam Uop a+ Course Tutorial

2454 words - 10 pages Of Phoenix ACC 291 Final Exam. The author is working in the field of education from last 5 years. This article covers the basic of ACC 291 Final Exam Assignment from UOP. Other topics in the class are as follows: ACC 291 Week 1 DQ 1 (With 3 Responses) ACC 291 Week 1 DQ 2 (With 3 Responses) ACC 291 Week 1 Complete ACC 291 Week 2 DQ 1 (With 3 Responses) ACC 291 Week 2 DQ 2 (With 3 Responses) ACC 291 Week 2 WileyPLUS ACC 291 Week 2

Related Essays

Acc 206 Week 2 Assignment

1347 words - 6 pages Week 2 Assignment ACC 206 1. Analysis of stockholders' equity 1. Preference stock (100 par value) issued during 20X6 = 580,000 – 500,000 = $80,000 Number of preference shares issued during 20X6 = Par value of preferred shares issued / Par value per share of preferred shares = 80,000 / 100 = 800 shares 2. Common stock (10 par value) sold

Acc 400 Week 3 Textbook Essay

1787 words - 8 pages Week 3 Assignment from the textbook Nancy Schwartz ACC/400 February 8, 2016 Lee Kroll Exercise 20.1 Listed below are nine technical accounting terms introduced in this chapter: Variable costs Relevant range Contribution margin Break-even point Fixed costs Semivariable costs Economies of scale Sales mix Unit contribution margin Each of the following statements may (or may not) describe one of these technical terms. For

Uop Acc 547 Week 3 Dq I6 23 Problems: I8 40, C3 38, C3 58, C3 59 ,I10 52 Tax Strategy I13 65

1169 words - 5 pages UOP ACC 547 Week 3 DQ I6-23 Problems: I8-40, C3-38, C3-58, C3-59 ,I10-52 Tax Strategy I13-65 Complete the following in Federal Taxation Comprehensive: o    Discussion Question I6-23 o    Problems I8-40, C3-38, C3-58, & C3-59 o    Case Study I10-52 o    Tax Strategy Problem I13-65   Discussion Question I6-23 Under the related party rules of Sec. 267, why has Congress imposed the concept of constructive ownership? Problem

Uop Acc 547 Week 3 Dq I6 23 Problems: I8 40, C3 38, C3 58, C3 59 ,I10 52 Tax Strategy I13 65

1168 words - 5 pages ACC 547 Week 3 DQ I6-23 Problems: I8-40, C3-38, C3-58, C3-59 ,I10-52 Tax Strategy I13-65 Complete the following in Federal Taxation Comprehensive: o    Discussion Question I6-23 o    Problems I8-40, C3-38, C3-58, & C3-59 o    Case Study I10-52 o    Tax Strategy Problem I13-65   Discussion Question I6-23 Under the related party rules of Sec. 267, why has Congress imposed the concept of constructive ownership? Problem I8-40