ACOUNTING FOR MERCHANDISE OPERATING

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ACOUNTING FOR MERCHANDISE OPERATING by Mind Map: ACOUNTING FOR MERCHANDISE OPERATING

1. Overview

1.1. Income statement

1.1.1. Revenues from sales

1.1.2. Cost of good sold

1.1.3. Operating expenses

1.2. Gross price

1.2.1. Net price+Sale discount

1.3. Net price

1.3.1. Not having sale discount

1.4. Trade discounts

1.4.1. 30percent or more

2. Perpetual inventory system

2.1. Accounting for revenues form sales

2.1.1. Gross sales

2.1.1.1. Total sales for cash

2.1.1.2. Total sales on credit

2.1.2. Sales returns & allowances

2.1.2.1. decrease sales

2.1.3. Sales discounts

2.1.3.1. if the customer elects to pay in advanced

2.2. Accounting for cost of goods sold

2.2.1. Net purchases

2.2.1.1. Gross purchases - purchases returns and allowances and purchases discount plus

2.2.2. Net cost of purchases

2.2.2.1. Net purchase+freight in

2.2.3. Purchases returns and allowances

2.2.3.1. decrease Merchandise Inventory and decrease accounts payable

2.2.4. Freight in

2.2.4.1. customary for supplier pay transportation cost

2.3. Accounting for operating expenses

2.3.1. selling expenses

2.3.2. general an administrative expenses

3. Periodic inventory system

3.1. Accounting for revenues from sales

3.1.1. the same as perpetual inventory expenses

3.2. Accounting for cost of goods sold

3.2.1. accounting for purchases at the gross method

3.2.2. accounting for purchases with purchases discount

3.2.3. accounting for purchases at the net method

3.2.4. accounting for purchases returns and allowances

3.2.5. freight in

3.3. Accounting for operating expenses