会计英语10chap4merchandisingweek10省公共课一等奖全国赛课获奖课件.pptx

Accounting English(8)Spring 第1页Chapter 4 merchandising activities and accounting systemsn nLearning objectivesLearning objectivesSales revenue:Sales revenue:earned from selling merchandise earned from selling merchandise inventory.inventory.Service revenueService revenue:earned from providing services.:earned from providing services.Purchases,sales and cost of good sold.Purchases,sales and cost of good sold.Accounting cycle procedure and alternative income Accounting cycle procedure and alternative income statements formats.statements formats.Modified accounting information system.Modified accounting information system.2第2页4.1 Service enterprise vs merchandising concernn nService enterprise Service enterprise Service enterprises usually charge a commission or Service enterprises usually charge a commission or a fee for a servicea fee for a service ExamplesExamples:accounting firms,law firms,and taxi accounting firms,law firms,and taxi panies.3Income Statement Service FirmFees Earned$50,000Operating Expenses36,000Net Income$14,000第3页Merchandising CompaniesMerchandising companies Merchandising companies sell products to earn sell products to earn revenue.revenue.ExamplesExamples:sporting goods,clothing,and auto:sporting goods,clothing,and auto parts storesparts stores4Income Statement Merchandising FirmSales$150,000Cost of Goods Sold90,000Gross Profit(Margin)$60,000Operating Expenses35,000Net Income$25,000第4页Merchandising ActivitiesSales revenue:revenue from selling merchandise.Sales revenue:revenue from selling merchandise.COGS:expense of buying merchandise inventory COGS:expense of buying merchandise inventory for resale.for resale.5ManufacturerWholesalerRetailerCustomer第5页Merchandising Companies6第6页Operating CycleBegins with the purchase of merchandise and ends with the collection of cash from the sale of merchandise.第7页Comparing Merchandising Activities with Manufacturing Activities8Merchandising CompanyPurchase inventory in ready-to-sell condition.Manufacturing CompanyManufacture inventory and have a longer and more complex operating cycle第8页Two Approaches Used in Accounting for Merchandise Transactions 9Perpetual Inventory SystemPeriodic Inventory System第9页Periodic and perpetual inventory systemn nPeriodic inventory system:Periodic inventory system:定时盘存制定时盘存制 Physically count inventory,usually at end of Physically count inventory,usually at end of accounting period.accounting period.No detailed records of the actual inventory are No detailed records of the actual inventory are maintained during the accounting period.maintained during the accounting period.Less costly than perpetual inventory method,but Less costly than perpetual inventory method,but provides less information.provides less information.10永续盘存制永续盘存制第10页Perpetual Inventory SystemContinuous records are kept of the quantity and,Continuous records are kept of the quantity and,usually,the cost of individual items as they are usually,the cost of individual items as they are bought and sold.bought and sold.In a perpetual inventory system,each purchase In a perpetual inventory system,each purchase and sale of merchandise is recorded in an and sale of merchandise is recorded in an inventory account.inventory account.In this way,the inventory records always In this way,the inventory records always(perpetually)disclose the amount of inventory on(perpetually)disclose the amount of inventory on hand and the amount sold.hand and the amount sold.11第11页4.2 Purchase,Sales revenue and COGSn nKey termsKey terms Merchandise inventory:Merchandise inventory:商品存货商品存货 Net purchase:Net purchase:净购货净购货 Gross purchase:Gross purchase:总购货总购货 Purchase returns and allowance:Purchase returns and allowance:购货退回和折让购货退回和折让 Purchase discount:Purchase discount:购货折扣购货折扣 Trade discount:Trade discount:商业折扣商业折扣 Credit terms:Credit terms:付款条件付款条件(信用条件信用条件)Invoice price:Invoice price:发票价格发票价格 (list price:(list price:商品标价商品标价)12第12页Merchandise Purchases13On June,20,Melton Company purchased On June,20,Melton Company purchased$14,000 of merchandise inventory paying$14,000 of merchandise inventory paying cash cash (or on credit).(or on credit).第13页Seller Invoice date PurchaserOrder number Credit termsFreight terms Goods Invoice amount第14页Trade Discounts15Used by manufacturers and wholesalers to change selling prices without republishing their catalogue.(.(产品价格目录产品价格目录)ExampleJenCo,Inc.offers a 30%tradediscount on orders of 1,000units or more of their popularproduct Racer.Each Racer has a list price of$5.25.第15页True or False?Under a periodic inventory system,all purchases of Under a periodic inventory system,all purchases of inventory on credit are debited to the Merchandise inventory on credit are debited to the Merchandise inventory account at the time of purchase.inventory account at the time of purchase.Net purchase=gross purchase purchase discount-Net purchase=gross purchase purchase discount-purchase returns and allowance.purchase returns and allowance.A trade discount makes the actual price below the list A trade discount makes the actual price below the list price.price.The invoice price is determined by adding the trade The invoice price is determined by adding the trade discount to the catalogue price.discount to the catalogue price.On the accounting books of buyer,Any purchase On the accounting books of buyer,Any purchase transaction would be recorded at the invoice price.transaction would be recorded at the invoice price.16第16页Purchase DiscountsA deduction from the invoice price granted to induce early payment of the amount due.Another name is cash discountsTermsTimeDueDiscount PeriodFull amountless discountCredit PeriodFull amount duePurchase or SalePurchase or Sale第17页2/10,n/30Discount PercentNumber of Days Discount Is AvailableOtherwise,Net(or All)Is Due CreditPeriodPurchase Discounts第18页Accounting methods for cash discountn nGross method:Gross method:总价法总价法To record the discount only when realized is To record the discount only when realized is known.known.The gross method cause merchandise inventory to The gross method cause merchandise inventory to be overstated.be overstated.n nNet method:Net method:净价法净价法To deduct the cash discount from the merchandise To deduct the cash discount from the merchandise inventory when purchase occurs.inventory when purchase occurs.19第19页Purchase DiscountsOn May 7,Martin,Inc.purchased$27,000 of Merchandise Inventory on account,credit terms are 2/10,n/30.(gross method)第20页Purchase DiscountsOn May 15,Martin,Inc.paid the amount due on the purchase of May 7.$27,000 2%=$540 discount第21页Purchase DiscountsAfter we post these entries,the accounts involved look like this:Merchandise Inventory5/7 27,0005/15 540Bal.26,460 Accounts Payable 5/7 27,0005/15 27,000Bal.0第22页Purchase Returns and AllowancesPurchase Return.Merchandise returned by the purchaser to the supplier.Purchase Allowance.A reduction in the cost of defective merchandise received by a purchaser from a supplier.23第23页Purchase Returns and AllowancesOn May 9,Barbee,Inc.purchased$20,000 of On May 9,Barbee,Inc.purchased$20,000 of Merchandise Inventory on account,credit terms Merchandise Inventory on account,credit terms are 2/10,n/30.are 2/10,n/30.24第24页Purchase Returns and AllowancesOn May 10,Barbee,Inc.returned$500 of On May 10,Barbee,Inc.returned$500 of defective merchandise to the supplier.defective merchandise to the supplier.25第25页Purchase Returns and AllowancesOn May 18,Barbee,Inc.paid the amount owed On May 18,Barbee,Inc.paid the amount owed for the May 9 purchase.for the May 9 purchase.26第26页Ye Sun Accounting English27Recording Purchases at Gross Invoice PriceOn July 6,Play Clothes purchased$4,000 of On July 6,Play Clothes purchased$4,000 of merchandise on credit with terms of merchandise on credit with terms of 2/10,n/30 from Kids Clothes.2/10,n/30 from Kids Clothes.Prepare the journal entry for Play Clothes.Prepare the journal entry for Play Clothes.第27页Ye Sun Accounting English28Recording Purchases at Gross Invoice PriceOn July 6,Play Clothes purchased$4,000 of On July 6,Play Clothes purchased$4,000 of merchandise on credit with terms of merchandise on credit with terms of 2/10,n/30 from Kids Clothes.2/10,n/30 from Kids Clothes.Prepare the journal entry for Play Clothes.Prepare the journal entry for Play Clothes.第28页Ye Sun Accounting English29Recording Purchases at Gross Invoice PriceOn July 15,Play Clothes pays the full amount due to Kids Clothes.Prepare the journal entry for Play Clothes.第29页Ye Sun Accounting English30Recording Purchases at Gross Invoice PriceOn July 15,Play Clothes pays the full amount due to Kids Clothes.Prepare the journal entry for Play Clothes.Reduces Cost of Goods Sold$4,000*98%=$3,920第30页Ye Sun Accounting English31Recording Purchases at Gross Invoice PriceNow,assume that Play Clothes waited until July 20 to pay the full amount due to Kids Clothes.Prepare the journal entry for Play Clothes.第31页Ye Sun Accounting English32Recording Purchases at Gross Invoice PriceNow,assume that Play Clothes waited until July 20 to pay the full amount due to Kids Clothes.Prepare the journal entry for Play Clothes.第32页Ye Sun Accounting English33Returns of Unsatisfactory MerchandiseOn August 5,Play Clothes returned$500 of On August 5,Play Clothes returned$500 of unsatisfactory merchandise purchased from Kids unsatisfactory merchandise purchased from Kids Clothes on credit terms of 2/10,n/30.Clothes on credit terms of 2/10,n/30.Prepare the journal entry for Play Clothes.Prepare the journal entry for Play Clothes.第33页Recording Transportation CostsTransportation costs are the cost of moving inventory from seller to buyer.FOB stands for Free on Board and governs the passing of title of the goods.Selling/buying agreements usually specify FOB terms.FOB:离岸价格34第34页Transportation CostsFOB shipping pointFOB shipping point(buyer pays)(buyer pays)FOB destinationFOB destination(seller pays)(seller pays)MerchandiseSellerBuyer第35页On May 12,Barbee,Inc.purchased$8,000 of On May 12,Barbee,Inc.purchased$8,000 of Merchandise for cash and also paid$100 Merchandise for cash and also paid$100 transportation costs.transportation costs.36第36页On May 12,Barbee,Inc.purchased$8,000 of On May 12,Barbee,Inc.purchased$8,000 of Merchandise for cash and also paid$100 Merchandise for cash and also paid$100 transportation costs.transportation costs.37第37页exercise1.In credit term of 2/10,n/60,the credit period is()days,the discount period is()days.2.True or falseA)Purchase returns and purchase allowance will increase the amount that the buyer must pay the seller.B)For FOB destination,the seller pays for transportation and have the ownership of the goods in transit.39第39页EXAMPLE 4-1n nTRANSLATIONTRANSLATION 1,1,在永续盘存制和总价法下在永续盘存制和总价法下在永续盘存制和总价法下在永续盘存制和总价法下,编制商品交易会计分录编制商品交易会计分录编制商品交易会计分录编制商品交易会计分录;2,2,支付支付支付支付5 5月月月月2 2日所购商品运费日所购商品运费日所购商品运费日所购商品运费$125.$125.3,3,向向向向ABCABC企业送出支票企业送出支票企业送出支票企业送出支票,支付支付支付支付5 5月月月月2 2日购置商品欠款日购置商品欠款日购置商品欠款日购置商品欠款,扣除退货扣除退货扣除退货扣除退货及折扣后净额及折扣后净额及折扣后净额及折扣后净额;4,After brief negotiation,received a credit memorandum 4,After brief negotiation,received a credit memorandum from Platt Co granting a$700 allowance on the purchase of from Platt Co granting a$700 allowance on the purchase of May 18.May 18.40第40页Revenue from sales and COGS under perpetual inventory systemnThe entries should be recorded simultaneously;The entries should be recorded simultaneously;Accounts receivable.XXXAccounts receivable.XXX Sales.XXX Sales.XXXCOGS.YYYCOGS.YYY Merchandise inventoryYYY Merchandise inventoryYYYnTo record sales returns and allowances,To record sales returns and allowances,Merchandise inventory.XXMerchandise inventory.XX Accounts receivableXX Accounts receivableXX41第41页Sales DiscountsOn June 8,Borey Co.sold merchandise costing On June 8,Borey Co.sold merchandise costing$3,500 for$6,000 on account.Credit terms were$3,500 for$6,000 on account.Credit terms were 2/10,n/30.2/10,n/30.42GENERAL JOURNALPage 3DateDescriptionPRDebitCreditJun8 Accounts Receivable6,000 Sales 6,000 Cost of Goods Sold3,500 Merchandise Inventory 3,500第42页Sales DiscountsOn June 17,Borey Co.received a check for$5,880 in On June 17,Borey Co.received a check for$5,880 in full payment of the June 8 sale.full payment of the June 8 sale.43 GENERAL JOURNALPage 5DateDescriptionPRDebitCreditJun.17 Cash5,880 Sales Discounts120Accounts Receivable 6,000第43页Inventory ShrinkageShrinkage is defined as“the loss of inventory.”Usually charged to cost of goods sold.存货商品成本存货商品成本:cost of goods on hand销售成本销售成本:cost of goods sold.44第44页Inventory ShrinkageSuppose that Z-Marts Inventory account at year-end Suppose that Z-Marts Inventory account at year-end has a balance of$21,250,but that a physical count has a balance of$21,250,but that a physical count reveals only$21,000 of inventory on hand.reveals only$21,000 of inventory on hand.45 GENERAL JOURNALPage 49DateDescriptionPR Debit CreditDec 31 Cost of Goods Sold250 Merchandise Inventory 250 To adjust for$250 inventory shrinkage revealed by physical inventory count.第45页4.3 alternative income statement formats销售净额销售净额销售净额销售净额.net sales销售成本销售成本销售成本销售成本.COGS.COGS销售毛利销售毛利销售毛利销售毛利.Gross profit from sales.Gross profit from sales营业费用营业费用营业费用营业费用.Operating expenses.Operating expenses销售费用销售费用销售费用销售费用.Selling expenses.Selling expenses管理费用管理费用管理费用管理费用.General and administrative expensesGeneral and administrative expenses费用总额费用总额费用总额费用总额.Total expenses.Total expenses净净净净 利利利利 润润润润.Net income .Net income 46第46页Step 1:Close the Revenue Accounts to Income Summary.第47页Step 2:Close the Expense Accounts to Income Summary.第48页Step 2:Close Debit Balances in Temporary Accounts to Income Summary.第49页Step 3:Close Income Summary to Retained Earnings第50页Inventory Systems+BeginninginventoryNet cost ofpurchasesMerchandiseavailable for saleEnding InventoryCost of GoodsSold第51页Merchandising Cost Accounts+BeginninginventoryYear 1Net cost ofpurchases Merchandiseavailable for saleEnding Inv.Year 1Cost of GoodsSold=Income StatementBecomes beginning inventory of Year 2BalanceSheet第52页4.5 accounting systemnThe ideal accounting system should achieve the The ideal accounting system should achieve the following objectivesfollowing objectives1,to process the information at low cost;1,to process the information at low cost;2,to obtain reports promptly;2,to obtain reports promptly;3,to ensure a high degree of accuracy.3,to ensure a high degree of accuracy.4,to minimize the possibility of theft or fraud.4,to minimize the possibility of theft or fraud.计算机系统计算机系统计算机系统计算机系统:computerized system:computerized system手工系统手工系统手工系统手工系统:manual system:manual system电子表格电子表格电子表格电子表格:spreadsheets:spreadsheets53第53页4.6 special journals特种日志账特种日志账:special journals明细分类账明细分类账:subsidiary ledger赊销赊销:sales on account赊购赊购:purchases on account现销现销:cash sales现购现购:cash purchases54第54页4.7 Chinese practice 科目汇总表:Categorized accounts summary55第55页4.8 two ratios56A common rule of thumb is the acid-test ratio should have a value of at least 1.0 to conclude a company is unlikely to face liqu