Kế toán, kiểm toán - Chapter 4: Merchandising operations

Describe and illustrate merchandising operations and the two types of inventory systems 2. Account for the purchase of inventory using a perpetual system 3. Account for the sale of inventory using a perpetual system 4. Adjust and close the accounts of a merchandising business 5. Prepare a merchandiser’s financial statements 6. Use gross profit percentage, inventory turnover, and days in inventory to evaluate a business 7. Account for the sale of inventory using a periodic system 8. Prepare worksheets for a merchandiser

pdf7 trang | Chia sẻ: thuychi11 | Lượt xem: 609 | Lượt tải: 0download
Bạn đang xem nội dung tài liệu Kế toán, kiểm toán - Chapter 4: Merchandising operations, để tải tài liệu về máy bạn click vào nút DOWNLOAD ở trên
International accounting Chapter 4: Merchandising Operations MA. NguyenQuocNhat 1nhatnq.faa@gmail.com LOGO Chapter 4 MA. Nguyen Quoc Nhat www.themegallery.com Company Logo Learning Objectives 1. Describe and illustrate merchandising operations and the two types of inventory systems 2. Account for the purchase of inventory using a perpetual system 3. Account for the sale of inventory using a perpetual system 4. Adjust and close the accounts of a merchandising business 5. Prepare a merchandiser’s financial statements 6. Use gross profit percentage, inventory turnover, and days in inventory to evaluate a business 7. Account for the sale of inventory using a periodic system 8. Prepare worksheets for a merchandiser www.themegallery.com Company Logo Chapter ‘s content 4.1 What Are Merchandising Operations? 4.2 Accounting for Inventory in the Perpetual System 4.3 Adjusting and Closing the Accounts of a Merchandiser 4.4 Preparing a Merchandiser’s Financial Statements 4.5 Three Ratios for Decision Making International accounting Chapter 4: Merchandising Operations MA. NguyenQuocNhat 2nhatnq.faa@gmail.com www.themegallery.com Company Logo 4.1 What Are Merchandising Operations? www.themegallery.com Company Logo 4.1 What Are Merchandising Operations? The operating cycle of a merchandiser is as follows : 1. It begins when the company purchases inventory from a vendor. 2. The company then sells the inventory to a customer. 3. Finally, the company collects cash from customers. www.themegallery.com Company Logo 4.1 What Are Merchandising Operations? Inventory Systems: There are two main types of inventory accounting systems: ● Periodic system ● Perpetual system International accounting Chapter 4: Merchandising Operations MA. NguyenQuocNhat 3nhatnq.faa@gmail.com www.themegallery.com Company Logo 4.1 What Are Merchandising Operations? Inventory Systems: There are two main types of inventory accounting systems: ● Periodic system - the business physically counts its inventory periodically to determine the quantities on hand ● Perpetual system - the number of inventory units and the dollar amounts are perpetually (constantly) updated. www.themegallery.com Company Logo 4.2 Accounting for Inventory in the Perpetual System Purchase of Inventory Suppose Smart Touch buys $35,000 of inventory, returns $700 of the goods, and takes a 2% early payment discount. Smart Touch also pays $2,100 of freight in. The following summary shows Smart Touch’s net cost of this inventory. All amounts are assumed for this illustration. www.themegallery.com Company Logo 4.2 Accounting for Inventory in the Perpetual System International accounting Chapter 4: Merchandising Operations MA. NguyenQuocNhat 4nhatnq.faa@gmail.com www.themegallery.com Company Logo 4.2 Accounting for Inventory in the Perpetual System Sale of Inventory Sales revenue (Sales): The amount a business earns from selling merchandise inventory. Cost of goods sold (COGS) (also known as Cost of sales or COS)is the cost of inventory that has been sold to customers.  the merchandiser’s major expense www.themegallery.com Company Logo 4.2 Accounting for Inventory in the Perpetual System Sale of Inventory A sales return: The customer may return goods to Smart Touch, asking for a refund or credit to the customer’s account. A sales allowance: Smart Touch may grant a sales allowance to entice the customer to accept non-standard goods. This allowance will reduce the future cash collected from the customer. A sales discount: If the customer pays within the discount period—under terms such as 2/10, n/30—Smart Touch collects the discounted amount. Freight out: Smart Touch may have to pay delivery expense to transport the goods to the buyer. www.themegallery.com Company Logo 4.3 Adjusting and Closing the Accounts of a Merchandiser A merchandiser adjusts and closes accounts the same way a service entity does. If a worksheet is used, the trial balance is entered, and the worksheet is completed to determine net income or net loss International accounting Chapter 4: Merchandising Operations MA. NguyenQuocNhat 5nhatnq.faa@gmail.com www.themegallery.com Company Logo 4.3 Adjusting and Closing the Accounts of a Merchandiser Closing still means to zero out all accounts that aren’t on the balance sheet. All amounts are assumed for this illustration. www.themegallery.com Company Logo 4.4 Preparing a Merchandiser’s Financial Statements Income Statement: The income statement begins with Sales, Cost of goods sold, and Gross profit. Then come the operating expenses, which are those expenses other than Cost of goods sold www.themegallery.com Company Logo 4.4 Preparing a Merchandiser’s Financial Statements 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. International accounting Chapter 4: Merchandising Operations MA. NguyenQuocNhat 6nhatnq.faa@gmail.com www.themegallery.com Company Logo 4.5 Three Ratios for Decision Making The Gross Profit Percentage www.themegallery.com Company Logo 4.5 Three Ratios for Decision Making The Rate of Inventory Turnover www.themegallery.com Company Logo 4.5 Three Ratios for Decision Making Days in Inventory International accounting Chapter 4: Merchandising Operations MA. NguyenQuocNhat 7nhatnq.faa@gmail.com LOGO www.themegallery.com