Accounting test #2

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Author:
bigtitties420
ID:
288302
Filename:
Accounting test #2
Updated:
2014-11-05 20:41:08
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  1. Sold on account- journal entry
    • Dr accounts receivable 
    •    cr sales revenue
    • dr COGS
    •    cr inventory
  2. Returns on merchandise - journal entry (contra-revenue)
    • dr sales returns and allowances
    •    cr accounts receivable 
    • dr inventory
    •    cr COGS
  3. Discounts - journal entry
    • dr cash (difference between account receivables-discount)
    •    cr accounts receivable
    • dr inventory
    •    cr COGS
  4. Net sales
    • Sales Revenue
    • - Sales returns and allowances
    • - Sales discounts
  5. Gross profit
    net sales - COGS
  6. Gross profit %
    gross profit/net sales X 100
  7. Specific identification
    • add up whats sold = COGS
    • rest is ending inventory
  8. Inventory turnover
    COGS/Average inventory(beg+end/2)
  9. Days in turnover
    365/inventory turnover
  10. Allowance for doubtful accounts
    • dr bad debt expense
    •     cr allowance for doubtful accounts
  11. Net realizable value
    accounts receivable-allowance for doubtful accounts
  12. Write-off
    • dr allowance for doubtful accounts
    •    cr accounts receivable
  13. Direct write-off
    • dr bad debt expense
    •     cr accounts receivable
  14. Aging method
    • dr bad debt expense
    •      cr allowance

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