ACCT 209 Lecture Notes - Lecture 13: Income Statement, Matching Principle, Perpetual Inventory
Document Summary
Ex: bricks & mortar, online (ecommerce), wholesaler, retailer, etc. Sales revenue: or could be called just sales : generally, revenue is recorded at the time of sale gets complicated with unearned revenue like gift card. Sales returns and allowances; is a contra account to the revenue: sales return: when the customer returns previously purchased merchandise, sales allowance: reduction in price due to defect or some other condition. Kyle company sold ,000 of merchandise on account (in credit terms 2/10, n/30) to a customer on. On november 25, the customer returned of the goods; on november 30 the customer paid the balance due: 400-600=3400, 3400 x . 02=68, 3400-68=3332. Sales [s. r + a] - s. disc= net sales. Cost of goods sold also known as cost of sales (inventory expense: objective: to match cost of inventory purchased with the revenue earned when the inventory is sold.
