New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

Chapter 5 Notes 2/17/16

by: ljackson60 Notetaker

Chapter 5 Notes 2/17/16 ACCT 2101

Marketplace > Georgia State University > Accounting > ACCT 2101 > Chapter 5 Notes 2 17 16
ljackson60 Notetaker
GPA 3.17

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

These are notes covering what we went over on Wednesday.
Principles of Accounting 1
Kris J. Clark
Class Notes
Principles of Accounting 1
25 ?




Popular in Principles of Accounting 1

Popular in Accounting

This 1 page Class Notes was uploaded by ljackson60 Notetaker on Sunday February 14, 2016. The Class Notes belongs to ACCT 2101 at Georgia State University taught by Kris J. Clark in Spring 2016. Since its upload, it has received 49 views. For similar materials see Principles of Accounting 1 in Accounting at Georgia State University.


Reviews for Chapter 5 Notes 2/17/16


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 02/14/16
Louis Jackson Principles of Accounting 1 Chapter 5: Merchandising Operations and The Multiple­Step Income Statement  Merchandising Operations­  1. Income Statement 1A.) A merchandising company (retailer) is a “middle man” company because they simply buy goods from wholesalers and sell it to consumers which is  considered a sale ( the primary source of revenu ). 1B.) It is important to know that a credit sale is when the retailer carries the  credit risk of a purchase not paid for in cash. For example a Macy’s credit  card. 1C.) Income is measured like this:      Sales Revenue­ Cost of Goods Sold= Gross Profits.      Gross Profits­operating expenses=net income (loss) 1D.) Cost of goods sold simply means it is the cost of buying that good, for  retailers it is an expense. 1E.) Perpetual inventory system­ system where inventory is updated after each sale. 1F.) Periodic inventory system­ inventory is accounted for by physical count  or a certain time basis.  Recording Purchases of Merchandise A.) Freight cost is an operating expense for the seller when they pay for  shipping. B.) Ownership of goods passes to buyer when goods are being shipped to  them and also when the buyer actually receives the goods. C.) FOB Shipping point­ buyer pays for shipping of goods and ownership  goes to buyer when the carrier accepts the goods. D.) FOB Destination­ownership of goods remains with seller until it reaches  buyer. E.) A purchase return is when a purchases returns goods for cash or credit. F.) A purchase allowance is when the purchaser returns goods for whatever  reason and gets money off of the item. G.) Credit terms may permit buyer to claim a cash discount for prompt  payment.


Buy Material

Are you sure you want to buy this material for

25 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."

Allison Fischer University of Alabama

"I signed up to be an Elite Notetaker with 2 of my sorority sisters this semester. We just posted our notes weekly and were each making over $600 per month. I LOVE StudySoup!"

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."


"Their 'Elite Notetakers' are making over $1,200/month in sales by creating high quality content that helps their classmates in a time of need."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.