.lst-kix_6dw35xdq7ug-7 > li:before{content:"- "}.lst-kix_6dw35xdq7ug-8 > li:before{content:"- "}.lst-kix_p4i1b6s849po-0 > li:before{content:"- "}.lst-kix_p4i1b6s849po-2 > li:before{content:"- "}.lst-kix_p4i1b6s849po-1 > li:before{content:"- "}.lst-kix_p4i1b6s849po-7 > li:before{content:"- "}ul.lst-kix_6dw35xdq7ug-4{list-style-type:none}ul.lst-kix_6dw35xdq7ug-5{list-style-type:none}ul.lst-kix_6dw35xdq7ug-2{list-style-type:none}.lst-kix_p4i1b6s849po-8 > li:before{content:"- "}ul.lst-kix_6dw35xdq7ug-3{list-style-type:none}ul.lst-kix_6dw35xdq7ug-8{list-style-type:none}ul.lst-kix_6dw35xdq7ug-6{list-style-type:none}ul.lst-kix_6dw35xdq7ug-7{list-style-type:none}ul.lst-kix_6dw35xdq7ug-0{list-style-type:none}ul.lst-kix_6dw35xdq7ug-1{list-style-type:none}.lst-kix_p4i1b6s849po-6 > li:before{content:"- "}.lst-kix_p4i1b6s849po-5 > li:before{content:"- "}.lst-kix_p4i1b6s849po-4 > li:before{content:"- "}.lst-kix_p4i1b6s849po-3 > li:before{content:"- "}.lst-kix_b1bbwc7l31n6-1 > li:before{content:"- 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"}ul.lst-kix_p4i1b6s849po-5{list-style-type:none}ul.lst-kix_p4i1b6s849po-4{list-style-type:none}ul.lst-kix_p4i1b6s849po-7{list-style-type:none}ul.lst-kix_p4i1b6s849po-6{list-style-type:none}ul.lst-kix_b1bbwc7l31n6-1{list-style-type:none}ul.lst-kix_p4i1b6s849po-1{list-style-type:none}ul.lst-kix_b1bbwc7l31n6-2{list-style-type:none}ul.lst-kix_p4i1b6s849po-0{list-style-type:none}ul.lst-kix_p4i1b6s849po-3{list-style-type:none}ul.lst-kix_b1bbwc7l31n6-0{list-style-type:none}ul.lst-kix_p4i1b6s849po-2{list-style-type:none}ul.lst-kix_b1bbwc7l31n6-5{list-style-type:none}ul.lst-kix_b1bbwc7l31n6-6{list-style-type:none}ul.lst-kix_b1bbwc7l31n6-3{list-style-type:none}.lst-kix_vv42h4i5cwff-5 > li:before{content:"- "}ul.lst-kix_b1bbwc7l31n6-4{list-style-type:none}.lst-kix_vv42h4i5cwff-4 > li:before{content:"- "}ul.lst-kix_b1bbwc7l31n6-7{list-style-type:none}ul.lst-kix_b1bbwc7l31n6-8{list-style-type:none}.lst-kix_vv42h4i5cwff-2 > li:before{content:"- "}.lst-kix_vv42h4i5cwff-1 > li:before{content:"- 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Chapter 5 - Merchandising
- Inventory - supplies we intend to sell
- Asset when you have it
- Expense when you sell it
- Expense account for inventory
- EXamples: CGS 50
Inventory 50
- Gross profit - difference between how much we sell it for and how much we paid for it (sales - CGS = Gross profit)
- Aka “gross margin”
- Examples: sales $30 100%
Less: CGS 20 107%
Gross profit 10 33%
- Gross profit divided by net sales = percentage
- Example: bought 10 shirts $20 each
- Perpetual system - can look up cost of inventory shows actual cost including getting the inventory to you (uses computer system)
InvWe also discuss several other topics like What are the types of recombination?
200 -- shirts are $20 each
10 -- $10 in shipping (transportation in)
210 -- with shipping included now, shifts are $21
- Cash discounts - if we pay back our invoice (bill) within a certain time period we can get a discount
- Written on invoice in shorthand as:
2/10, n/30We also discuss several other topics like What is meant by sleep debt?
2% of if paid in 10 days no discount option, must pay in 30 days
Example: 2-8 inv 1000
A/P 1000
(2/10)We also discuss several other topics like What is meant by Philosophical logic?
2-15 A/P 1000
Cash 980
Inv 20
Inv A/PIf you want to learn more check out ds=rdθ
1000 | 20 1000 | 1000
(50at $20 | |
980 | | 0
(50 at $19.60)We also discuss several other topics like Name the five processes in Mergeresort 5.
Sell shirtIf you want to learn more check out What pertains to the volume of the red blood cells in the blood?
Cash 30
Sales 30
CGS 19.60 sales CGS
Inv 19.60 |30 19.60 |
Example: sales discount - to customers to have them (pay bill sooner, contra revenue)
A/R 700
Sales 700
(3 / 15, n / 45)
CGS 500
Inv 500
Inv A/R sales
1000 | 500 700 | 700 | 700
(50 at $20 | | |
500 | 0 | |
(25 at $20) |
CGS
500
Paid within 15 days: Sales Discount
21 |
Cash 679 |
Sales Discounts 21 |
A / R 700
- sales return and allowances - contra revenue, returns of refund money after negotiation
- FOB (free on board) shipping point - as soon as manufacturer ships items, sale is complete
- FOB destination - sale not complete until product is received, shipping cost paid by manufacturer
Periodic System
- Mom and pop stores use
- Doesn’t update: inventory after every sale
- Uses account “purchases” to get more supplies temporary account
- Estimates CGS
Example: cash 1800
Sales 1800
Purchases 5500
Cash 5500
Inv purchases sales
5000 | 5000 | | 1800
| | |
CGS - beg inv and purchases 5000
9500 | 5500
| available inv - 10,500
- Ending inv (physically count) (1000)
- equals CGS (estimate) = 9500
