ACCT 301 Lecture Notes - Lecture 5: Accrual, Limited Partnership, Target Corporation
Document Summary
Identify the differences between a service enterprise and a merchandising company. Explain the recording of purchases under a perpetual inventory system. Explain the recording of sales revenues under a perpetual inventory system. Distinguish between a single-step and a multiple-step income statement. Determine the cost of goods sold under a periodic inventory system. One of the few things i want students to memorize! Study objective 1 - identify the differences between a service enterprise and a merchandising company: merchandising company: the primary source of revenues is the sale of merchandise, referred to as sales. Record purchase on account of inventory costing ,000. The transaction described is a purchase return and is recorded by decreasing accounts payable and decreasing. Seller is granted a purchase allowance of ,500. 2,500: freight-in represents the cost of transporting the goods to the buyer"s place of business, freight-in is an inventoriable cost (that is to say that it is added to the cost of inventory.
