01:198:170 Lecture Notes - Lecture 7: Income Statement, Combined Gas And Steam

• School: Rutgers University
• Department: Computer Science
• Course: 01:198:170
• Professor: F Geraci

Document Summary

Merchandising company- sell merchandise as primary revenue, not performing services. Companies that sell product straight to consumers- retailers. Companies that sell product to the retailers- wholesalers. Revenue is from selling merchandise sales revenue, or sales. Expenses for merchandise companies: costs of goods sold and operating expenses. Cost of goods sold: total cost of all merchandise sold during accounting period. Sales revenue costs of goods sold = gross profit. Service company: perform services a/r get cash perform services. Merchandising company: buy inventory sell inventory a/r cash buy inventory. Beginning inventory and cost of goods purchased cost of good available for sale. Cost of goods available for sale cost of goods sold & ending inventory. Record purchase of inventory at the beginning of the period. Record revenue and compute/record cost of goods sold per item. Continuous, all caught up at the end of the period. Determine costs of goods sold at the end of the accounting period (periodically)