Merchandising Operations and the Accounting Cycle - Pearson
Merchandising Operations and the Accounting Cycle - Pearson
Merchandising Operations and the Accounting Cycle - Pearson
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JVC<br />
SALES ORDER NO.<br />
N O DE COMMANDE<br />
CUSTOMER ORDER NO.<br />
N O DE COMMANDE CLIENT<br />
SPECIAL INSTRUCTIONS<br />
INSTRUCTIONS SPÉCIALES<br />
QTY.ORDERED<br />
QTÉ COMMANDÉE<br />
TRANS CODE<br />
CODE TRANS<br />
10<br />
1<br />
SALESMAN NO.<br />
N O DU VENDEUR<br />
PST NO.<br />
TVP N O<br />
MODEL / PART NUMBER<br />
MODÈLE N O / NUMÉRO DE L'ARTICLE<br />
CASH DISCOUNT<br />
ESCOMPTE AU COMPTANT<br />
JVC CANADA INC.<br />
21 FINCHDENE SQUARE, SCARBOROUGH, ONTARIO M1X 1A7<br />
PHONE: (416) 293-1311 FAX: (416) 293-8208<br />
DATE SHIPPED<br />
DATE D'EXPEDITION<br />
DESCRIPTION<br />
IF PAID BY<br />
SI PAYÉ PAR<br />
WAREHOUSE<br />
ENTREPÔT<br />
GST REG. NO.<br />
TPS REG. NO INVOICE / FACTURE<br />
DEPT. NO.<br />
N O DU DEPT.<br />
21.21 26/06/02<br />
NOTE:<br />
NO RETURNS WILL BE ACCEPTED WITHOUT PRIOR WRITTEN AUTHORIZATION BY JVC.<br />
ALL OVERDUE ACCOUNTS ARE SUBJECT TO 1-1/2% INTEREST CHARGE PER MONTH.<br />
CLAIMS FOR DAMAGES AND/OR SHORTAGES MUST BE MADE IN WRITING DIRECTLY WITH JVC.<br />
NOTE:<br />
AUCUN RETOUR ACCEPTÉ SANS AUTORISATION ÉCRITE PRÉALABLE PAR JVC.<br />
TOUT COMPTE EN SOUFFRANCE EST PASSIBLE D'UN INTÉRET DE 1-1/2% PAR MOIS.<br />
LES RÉCLAMATIONS EN RAISON DE DOMMAGES ET (OU) D'INSUFFISANCE DOIVENT ÉTRE ADRESSÉES<br />
EN ÉCRIVANT DIRECTEMENT AUPRÈS DE JVC.<br />
SHIPPED VIA<br />
EXPÉDIER PAR<br />
QTY. SHIPPED<br />
QTÉ EXPÉDIÉE<br />
CUSTOMER COPY COPIE DU CLIENT<br />
CUSTOMER NO.<br />
N O DU CLIENT<br />
PAYMENT TERMS<br />
CONDITIONS DE PAIEMENT<br />
QTY. B/O<br />
QTÉ VEN.<br />
UNIT PRICE<br />
PRIX UNITAIRE<br />
SHIPPING CHARGES / FRAIS D'EXPÉDITION<br />
OTHER CHARGES / AUTRES FRAIS<br />
GST / TPS<br />
GST / TPS ITC<br />
PST / TVP<br />
INVOICE DATE<br />
DATE DE FACTURE<br />
DISCOUNT<br />
ESCOMPTE<br />
G.S.T. REGISTRATION<br />
NO. R102746971<br />
4<br />
INVOICE NO.<br />
N O FACTURE<br />
40191-00 B 205 27/05/02 MAIN 2501 27/05/02 4104798-A<br />
2<br />
INVOICE TO:<br />
FACTURE À: AUSTIN SOUND CENTRE INC.<br />
299 PRINCESS ST.<br />
3<br />
KINGSTON, ON<br />
SHIP TO:<br />
EXPÉDIER À: AUSTIN SOUND CENTRE INC.<br />
299 PRINCESS ST.<br />
3<br />
KINGSTON, ON<br />
K7L 1B4<br />
K7L 1B4<br />
10542 R105794761 3% 15, NET 30 DAYS<br />
FREIGHT EXPENSE<br />
FRAIS DE TRANSPORT<br />
003 NIL<br />
5<br />
1 LA100<br />
1 QLA200<br />
CD PLAYER<br />
CD PLAYER<br />
6<br />
1<br />
0<br />
0<br />
1<br />
70.00<br />
7<br />
0<br />
1 LL1<br />
CD PLAYER<br />
1 0 131.75 0<br />
3 QLL2<br />
CD PLAYER<br />
3 0 153.00 0<br />
1 KDV33J<br />
CASSETTE DECK 0 1<br />
2 K2U40J<br />
CASSETTE DECK 0 2<br />
2 SKS11<br />
SPEAKER<br />
0 2<br />
9<br />
Exhibit 5S-1<br />
An Invoice<br />
OBJECTIVE 3<br />
Compute <strong>the</strong> cost of goods sold<br />
under <strong>the</strong> periodic inventory<br />
system<br />
280 Part One The Basic Structure of <strong>Accounting</strong><br />
EXTENSION<br />
SOMME GLOBALE<br />
70.00<br />
131.75<br />
459.00<br />
660.75<br />
0<br />
0<br />
46.25<br />
0<br />
0<br />
707.00<br />
Recording Transportation Costs<br />
Under <strong>the</strong> periodic system, costs to transport purchased inventory from seller to<br />
buyer are debited to a separate expense account, as shown for payment of a $60<br />
freight bill:<br />
June 1 Freight In ................................................................... 60.00<br />
Cash....................................................................... 60.00<br />
Paid a freight bill.<br />
Recording <strong>the</strong> Sale of Inventory<br />
Recording sales is streamlined in <strong>the</strong> periodic system. With no running record of<br />
inventory to maintain, we can record a $3,000 sale as follows:<br />
June 5 Accounts Receivable ................................................ 3,000<br />
Sales Revenue ...................................................... 3,000<br />
Sale on account.<br />
No accompanying entry to Inventory <strong>and</strong> Cost of Goods Sold is required. Also, sales<br />
discounts <strong>and</strong> sales returns <strong>and</strong> allowances are recorded as shown for <strong>the</strong> perpetual<br />
system on page 233, but with no entry to Inventory <strong>and</strong> Cost of Goods Sold.<br />
Cost of Goods Sold<br />
Cost of goods sold (also called cost of sales) is <strong>the</strong> largest single expense of most<br />
businesses that sell merch<strong>and</strong>ise, such as SportChek <strong>and</strong> Austin Sound. It is <strong>the</strong><br />
cost of <strong>the</strong> inventory that <strong>the</strong> business has sold to customers. In a periodic system,<br />
cost of goods sold must be computed as in Exhibit 5S-2 <strong>and</strong> is not a ledger account.<br />
8<br />
1 The seller.<br />
2 The invoice date, needed for<br />
determining whe<strong>the</strong>r <strong>the</strong> purchaser<br />
gets a discount for prompt payment<br />
(see 4).<br />
3 The purchaser. This inventory is invoiced<br />
(billed) <strong>and</strong> shipped to <strong>the</strong><br />
same address.<br />
4 Credit terms of <strong>the</strong> transaction: If it<br />
pays within 15 days of <strong>the</strong> invoice<br />
date, Austin Sound may deduct 3%<br />
of <strong>the</strong> total amount. O<strong>the</strong>rwise, <strong>the</strong><br />
full amount—net—is due in 30 days.<br />
5 Austin ordered 6 CD players, 3 cassette<br />
decks, <strong>and</strong> 2 speakers.<br />
6 JVC shipped 5 CD players, no cassette<br />
decks, <strong>and</strong> no speakers.<br />
7 Quantity discount offered by JVC.<br />
8 Total invoice amount.<br />
9 Austin’s payment date. How much<br />
did Austin pay? (See 10.)<br />
10 Payment occurred 14 days after <strong>the</strong><br />
invoice date—within <strong>the</strong> discount period—so<br />
Austin paid $685.79 ($707 –<br />
3% discount). We will disregard GST<br />
for now.