• Net sales = net credit sales.
• Go over direct and indirect inventory methods.
o We can do recovery of previous losses.
o Allowance for inventory CANNOT be a debit.
• Make sure you know how to obtain PV and Future values of bonds, tables in back of book.
• Coupon rate is used to calculate actual cash interest paid.
• Market rate tells you the PV.
• Don’t mix up your single sum and annuity tables.
• Make sure you know which interest rate is what.
• When handling debt questions, the first thing you should do is make the schedule of
Date Interest Interest Income Amortizati Carrying Value