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1、Principles of AccountingJohn J. WildJohn J. WildKen W. ShawKen W. ShawBarbara Barbara ChiappettaChiappetta1919th th EditionEditionMcGraw-Hill/Irwin Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.会计学原理会计学原理Chapter 5Accounting for Merchandising OperationsConceptual Learning Obje
2、ctivesC1:C1: Describe Describe merchandising activitiesmerchandising activities and and identify identify income componentsincome components for a for a merchandising company. merchandising company.C2:C2: Identify and explain the Identify and explain the inventory assetinventory asset of of a mercha
3、ndising company. a merchandising company.C3:C3: Describe both Describe both perpetual and periodic perpetual and periodic inventory systems inventory systems. .C4:C4: Analyze and interpret Analyze and interpret cost flowscost flows and and operating activities of a merchandising operating activities
4、 of a merchandising company. company.4-3Procedural Learning ObjectivesP1:P1: Analyze and record transactions for Analyze and record transactions for merchandise merchandise purchasespurchases using a perpetual system. using a perpetual system.P2:P2: Analyze and record transactions for Analyze and re
5、cord transactions for merchandise merchandise salessales using a perpetual system. using a perpetual system.P3:P3: Prepare Prepare adjustments and close accountsadjustments and close accounts for a for a merchandising company.merchandising company.P4:P4: Define and Define and prepare multiple-step a
6、nd single-step prepare multiple-step and single-step income statementsincome statements. .4-4Merchandising Activities Service organizations sell time to earn revenue.Examples: Accounting firms, law firms and Examples: Accounting firms, law firms and plumbing servicesplumbing servicesRevenuesRevenues
7、ExpensesExpensesMinusMinusNetNetincomeincomeEqualsC 14-5ManufacturerWholesalerRetailerCustomerMerchandising CompaniesMerchandising Companiesa acquirecquire products/goods and products/goods and resell resell to customers to earn revenueto customers to earn revenue. .Merchandising ActivitiesC 14-6MMe
8、rchandise- erchandise- products or goods, acquired to resell to customersproducts or goods, acquired to resell to customersMMerchandisererchandiser- earns net income by buying and selling merchandise- earns net income by buying and selling merchandiseWholesalerWholesaler- an intermediary, buys produ
9、cts from - an intermediary, buys products from and sells to and sells to Retailer- Retailer- an intermediary, buys from and sells to customersan intermediary, buys from and sells to customersReporting Income of a Merchandiser Merchandising companiesMerchandising companies sell products to earn reven
10、ue. sell products to earn revenue.Examples: sporting goods, clothing, and auto parts storesExamples: sporting goods, clothing, and auto parts storesCost ofCost ofGoods SoldGoods SoldGrossGrossProfitProfitExpensesExpensesNetNetIncomeIncomeNetNetSalesSalesMinusEqualsMinusEqualsP24-7Operating Cycle for
11、 a Merchandiser Begins withBegins with the purchase of merchandise and ends withends with the collection of cash from the sale of merchandise.PurchasesPurchasesMerchandiseMerchandiseinventoryinventoryCredit salesCredit salesAccountsAccountsreceivablereceivableCashCashcollectioncollectionPurchasesPur
12、chasesMerchandiseMerchandiseinventoryinventoryCashCashsalessalesCash SaleCash SaleCredit SaleCredit SaleC 24-8Inventory Systems 存货存货+BeginninginventoryNet purchases MerchandiseMerchandiseavailable for saleavailable for saleEnding inventoryCost of goodssold=C 34-9+MMerchandise erchandise i inventoryn
13、ventory, or inventoryinventory, refers to products that a company owns and intends to sell.Merchandise Purchases On June 20, Jason, Inc. purchased $14,000 of Merchandise Inventory paying cash.P14-10Seller Invoice date PurchaserOrder numberCredit terms Freight termsGoodsInvoice amountP14-11Merchandis
14、e PurchasesPurchase Discounts A deduction from the invoice price granted to A deduction from the invoice price granted to induce early payment of the amount due.induce early payment of the amount due.TermsTimeDue Discount PeriodDiscount PeriodDue: Invoice Due: Invoice price minusprice minus discount
15、 discountCredit PeriodCredit PeriodDue: Full Invoice PriceDue: Full Invoice PriceDate of InvoiceDate of InvoiceP14-122/10,n/30Purchase DiscountsDiscount PercentNumber of Days Discount Is AvailableOtherwise, Net (or All) Is Due in 30 DaysCreditPeriodP14-13Purchase Discounts On May 7, Jason, Inc. purc
16、hased $27,000 of On May 7, Jason, Inc. purchased $27,000 of merchandise inventory on account, credit merchandise inventory on account, credit terms are 2/10, n/30.terms are 2/10, n/30.P14-14Purchase Discounts On May 15, Jason, Inc. paid the amount On May 15, Jason, Inc. paid the amount due on the pu
17、rchase of May 7.due on the purchase of May 7.*$27,000 2% = $540 discountP14-15Purchase Discounts 折扣折扣 After we post these entries, the accounts involved look like this:Merchandise Inventory Accounts Payable 5/7 27,0005/7 27,0005/15 5405/15 27,000Bal. 26,460Bal. 0P14-16When Discount is Not Taken If w
18、e fail to take a 2/10, n/30 discount, If we fail to take a 2/10, n/30 discount, is it really expensive?is it really expensive?X X365 days 20 days 2% =365 days 20 days 2% = 36.5% annual rate36.5% annual rate DaysDaysin ain ayearyearNumberNumberof additionalof additionaldays beforedays beforepaymentpa
19、ymentPercentPercentpaid to paid to keep keep moneymoneyP14-17I Implied annual interest ratemplied annual interest rateX3652%3010When Discount is Not Takenn nYou purchase a batch of products on terms of You purchase a batch of products on terms of 3/10, 3/10, n/90n/90, but your company has , but your
20、 company has limited cashlimited cash and you and you must borrow funds at an must borrow funds at an 11% annual rate11% annual rate if you are if you are to pay within the discount period. Do you take to pay within the discount period. Do you take advantage of the purchase discount?advantage of the
21、 purchase discount?1.1.N Not to use the discount termot to use the discount term, pay the full amount , pay the full amount ( (100%)100%) on Day 90 on Day 90thth. .2.2.Use the discount termUse the discount term: :Borrow at 11% for 80 daysBorrow at 11% for 80 daysPay 97% on Day 10Pay 97% on Day 10tht
22、hPay 97%11%80/365Pay 97%11%80/3652.34%2.34%3% enjoyed;2.34% incurred;So, 0.66% saved!Purchase Returns & Allowances退回与折让退回与折让Purchase Return . . .Purchase Return . . . Merchandise returned by the purchaser to Merchandise returned by the purchaser to the supplier.the supplier.Purchase Allowance . . .P
23、urchase Allowance . . . A reduction in the cost of A reduction in the cost of defective defective merchandisemerchandise received by a purchaser from received by a purchaser from a supplier.a supplier.P14-19Purchase Returns & Allowances退回与折让退回与折让On On May 9May 9, Matrix, Inc. purchased , Matrix, Inc
24、. purchased $20,000$20,000 of of merchandise inventory on account, merchandise inventory on account, credit terms are credit terms are 2/10, n/302/10, n/30. .P14-20Purchase Returns and Allowances On May 10, Matrix, Inc. On May 10, Matrix, Inc. returnedreturned $500 of $500 of defective merchandise t
25、o the supplier.defective merchandise to the supplier.P14-21Purchase Returns and Allowances On May 18, Matrix, Inc. paid the amount On May 18, Matrix, Inc. paid the amount owed for the purchase of May 9.owed for the purchase of May 9.P14-22Transportation CostsFOB shipping pointFOB shipping point(buye
26、r pays)(buyer pays)FOB destinationFOB destination(seller pays)(seller pays)MerchandiseSellerBuyerP14-23装运地交货装运地交货装运地交货装运地交货目的地交货目的地交货目的地交货目的地交货Cost principle requires that Cost principle requires that any necessary transportation costsany necessary transportation costso of a buyer be included as par
27、t of the cost of purchased merchandise f a buyer be included as part of the cost of purchased merchandise Transportation CostsOn May 12, Jason, Inc. purchased $8,000 of merchandise inventory for cash and also paid $100 transportation costs.P14-24Quick Check On July 6, 2009, Seller Co. sold $7,500$7,
28、500 of merchandise to Buyer, Co. on account; terms of 2/10,n/30 2/10,n/30. The shipping terms were FOB shipping pointFOB shipping point. The shipping cost was $100$100. Which of the following will be part of Buyers July 6 journal entry? a. Credit Sales $7,500b. Credit Purchase Discounts $150c. Debit
29、 Merchandise Inventory $7,600d. Debit Accounts Payable $7,450FOB shipping point indicates the buyer ultimately pays the freight. This is recorded witha debit to Merchandise Inventory.P14-25Cost of Merchandise PurchasedP14-26Accounting for Merchandise SalesSales discounts and returns and allowances a
30、re Sales discounts and returns and allowances are Contra RevenueContra Revenue accounts.accounts.P24-27Sales of MerchandiseTwo partsTwo parts: to recognize revenue in form of an asset to recognize cost of merchandise sold On On March 18March 18, Diamond Store sold $25,000 of , Diamond Store sold $25
31、,000 of merchandise merchandise on accounton account. The merchandise . The merchandise was carried in inventory at a cost of $18,000.was carried in inventory at a cost of $18,000.P24-28Sales Discounts 销售折扣销售折扣 On On June 8June 8, Barton Co. sold merchandise costing , Barton Co. sold merchandise cos
32、ting $3,500 for $6,000 $3,500 for $6,000 on accounton account. Credit terms were . Credit terms were 2/10, n/30. 2/10, n/30. Lets prepare the journal entriesLets prepare the journal entries. .P24-29Sales Discounts 销售折扣销售折扣 On On June 17June 17, Barton Co. received a check for , Barton Co. received a
33、 check for $5,880 in full payment of the $5,880 in full payment of the June 8June 8 sale. sale.P24-30Sales Returns & Allowances销售退回与折让销售退回与折让 On On June 12June 12, Barton Co. sold merchandise , Barton Co. sold merchandise costing costing $4,000$4,000 for for $7,500$7,500 on account. on account. The
34、credit terms were The credit terms were 2/10, n/302/10, n/30. .P24-31Sales Returns & Allowances销售退回与折让销售退回与折让 On On June 14June 14, merchandise with a sales price of , merchandise with a sales price of $800$800 and a cost of and a cost of $470$470 was was returned toreturned to Barton. Barton. The r
35、eturn is related to the The return is related to the June 12June 12 sale. sale.P24-32Sales Returns & Allowances销售退回与折让销售退回与折让 On June 20, Barton received the amount owed to On June 20, Barton received the amount owed to it from the sale of June 12.it from the sale of June 12.P24-33Lets complete the
36、accounting cycle by Lets complete the accounting cycle by preparing the preparing the closing entriesclosing entries for Barton for BartonC 44-34Step 1: Close Credit Balances in Temporary Accounts to Income SummaryP34-35Step 2: Close Debit Balances in Temporary Accounts to Income SummaryP34-36Step 3
37、: Close Income Summary to Retained EarningsP34-37Step 4: Close Dividends to Retained EarningsP34-38Multiple-Multiple-Step I/SStep I/SP44-39Single-Step Income StatementP44-40Classified Balance SheetP44-41Two Alternative Inventory Accounting Systems两两两两种存货核算制度种存货核算制度种存货核算制度种存货核算制度-collect information
38、about COGS and cost of inventoryn nPerpetual inventory system -Perpetual inventory system -永续盘存制永续盘存制永续盘存制永续盘存制Continually updateContinually update accounting records for accounting records for merchandising transactionsmerchandising transactionsRecords of inventory available for sale and Records of
39、 inventory available for sale and inventory soldinventory soldn nPeriodic inventory system -Periodic inventory system -定期盘存制定期盘存制定期盘存制定期盘存制UpdateUpdate accounting records accounting records only at the end of only at the end of a perioda periodPerpetual Perpetual PeriodicPeriodicPurchasesPurchasesMe
40、rchandise InventoryMerchandise Inventory Accounts Payable Accounts PayablePurchasesPurchases Accounts Payable Accounts PayablePurchase DiscountsPurchase DiscountsAccounts PayableAccounts Payable Merchandise Inv. Merchandise Inv. Cash CashAccounts PayableAccounts Payable Purchase Discount Purchase Di
41、scount Cash CashPurchase Returns and AllowancesPurchase Returns and AllowancesAccounts PayableAccounts Payable Merchandise Inv. Merchandise Inv.Accounts PayableAccounts Payable Purchase Purchase RsRs & As & AsTransportation-InTransportation-InMerchandise InventoryMerchandise Inventory Cash Cash Tran
42、sportation-InTransportation-In Cash CashPerpetual Perpetual PeriodicPeriodicSalesSalesAccounts ReceivableAccounts Receivable Sales SalesCost of Goods SoldCost of Goods Sold Merchandise InventoryMerchandise InventoryAccounts ReceivableAccounts Receivable Sales SalesSales Returns and AllowancesSales R
43、eturns and AllowancesSales Sales RsRs & As & As Accounts Receivable Accounts ReceivableMerchandise Inv.Merchandise Inv. Cost of Goods Sold Cost of Goods SoldSales Sales RsRs & & RsRs Accounts Receivable Accounts ReceivableSales DiscountsSales DiscountsCash Cash Sales DiscountsSales Discounts Account
44、s Receivable Accounts ReceivableCash Cash Sales DiscountsSales Discounts Accounts Receivable Accounts ReceivablePeriodic Inventory SystemnDuring the period, the Merchandise Inventory balance remains unchanged beginning balance, only updated at the end of the period.nDuring the period, the cost of me
45、rchandise is recorded in a temporary Purchase account.nWhen a company sells merchandise, it records revenue but not the cost of goods sold.nAt the end of the period, when a company prepares FSs, it takes a physical count 实物盘点实物盘点 of inventory. The cost of goods sold is computed by subtracting the ending inventory amount from the cost of merchandise available for sale.End of Chapter 54-46
