A purchase discounts and purchase returns and allowances example. Other videos in this series: Part 1 - Operating Cycle, Inventory, and Purchase Discount Terms Part 3 - Selling Inventory Part 4 - Adjusting and Closing Part 5 - Income Statements and Business Evaluation For more accounting/how to eLectures (and accompanying lecture notes), blog and a discount textbook-store visit www.TheAccountingDr.com Please note that videos may require Flash media and may not play on devices without Flash capabilities (i.e. iPad).
Views: 24689 Brian Routh TheAccountingDr
Accounting for purchase discounts (gross discount method versus net discount method) and purchase returns and allowances, example is for recording a purchase made on credit on for purchase of $20,000 goods with terms 2/10, n/30, (2% purchase discount if paid within 10 days, gross amount due in 30 days), for the (1) gross method, enter the purchase and payable at the gross amount, record purchase discount only when payment is paid within the discount period and report purchase discount as a deduction from purchases in the Income Statement, for the (2) net method, record purchases and payables (at net amount assumming full discounts are taken), represents the cash price, purchase discounts not taken reflect penalties added to established price and considers purchase discounts lost as an "Other Expense" item on the Income Statement, purchase returns and allowances are recorded in the same manner gross and net amounts, detailed accounting example by Allen Mursau
Views: 11550 Allen Mursau
Discount Terms and journal entries for purchase discounts
Views: 52783 mattfisher64
This video explains the differences between the periodic and perpetual methods for recording the purchase, return and payment of inventory. Purchase discounts and terms are also explained. For more help with accounting, please visit my website http://AccountingInFocus.com.
Views: 9647 Kristin Ingram
75% OFF the Full Crash Course on Udemy: http://bit.ly/2oZIdcP So we've talked about the perpetual inventory for some time now. Well, now its time to learn how to journalize certain transactions in this system like purchases, returns, discounts along with shipping costs (Looking at FOB destination and FOB shipping). Merchandise inventory will be used in this inventory system and will include constant cost of goods sold changes as inventory is sold and returned. Watch the entire tutorial and understand this concept to our inventory chapter! ** Notepirate is privately owned and exclusive to Notepirate.com.** Website: http://www.notepirate.com Follow us on Facebook: https://www.facebook.com/pages/Note-Pirate/514933148520001?ref=hl Follow us on Twitter: http://twitter.com/notepirate We appreciate all of the support you guys have given us. Be apart of the mission to help us reach more students by subscribing, thumbs upping and adding the videos to your favorites!
Views: 47182 Notepirate
Go to: http://www.accountingworkbook.com/ to download the problems. Module 6 examines inventory purchases, discounts, returns and allowances. We will cover journal entries for many inventory transactions, and we will learn how to prepare a merchandiser’s financial statements.
Views: 8014 Tony Bell
Discussion of the operating cycle, inventory, purchase discount terms Accompanying lecture notes: http://tiny.cc/nw1enw -- Thank you all for your wonderful support. Because of your support we have been able to reach and help numerous accounting students all over the world. Please continue to be a part of our mission to help other accounting students be successful by giving our videos thumbs up, adding our videos to your favorites and subscribing to our YouTube channel (click on more info on the videos). Subscribe: http://www.youtube.com/subscription_center?add_user=routhwsuedu Friend me on Facebook: http://www.facebook.com/TheAccountingDoctor -- Part 2 - Purchase Discounts and Purchase Returns and Allowances Example Part 3 - Selling Inventory Part 4 - Adjusting and Closing Part 5 - Income Statements and Business Evaluation For more accounting/how to eLectures (and accompanying lecture notes), blog and a discount textbook-store visit www.TheAccountingDr.com Please note that videos may require Flash media and may not play on devices without Flash capabilities (i.e. iPad).
Views: 22687 Brian Routh TheAccountingDr
Discussion on the selling of inventory: the journal entries recorded as well as a short review on sales returns and allowances and sales discounts as well as F.O.B., freight-in, freight-out, and delivery expense. Other videos in this series: Part 1 - Operating Cycle, Inventory, Purchase Discount Terms Part 2 - Purchase Discounts and Purchase Returns and Allowances Example Part 4 - Adjusting and Closing Part 5 - Income Statements and Business Evaluation For more accounting/how to eLectures (and accompanying lecture notes), blog and a discount textbook-store visit www.TheAccountingDr.com Please note that videos may require Flash media and may not play on devices without Flash capabilities (i.e. iPad).
Views: 12255 Brian Routh TheAccountingDr
Purchase discounts are reductions in the amount paid for purchases due to payment within the discount terms. For instance, if the terms were 2/10 net 30, a 2% discount would be applied to the total cost of merchandise purchases if payment was made within 10 days, otherwise payment would be due within 30 days. Purchase discounts can be accounted for on the books using the gross or net methods. Discounts on purchases only apply to the costs of the merchandise, shipping costs wouldn't be eligible for a discount. ---------- Accounting tutoring on Chegg Tutors Learn about Accounting terms like Purchase Discounts and Discount Terms on Chegg Tutors. Work with live, online Accounting tutors like Jayson L. who can help you at any moment, whether at 2pm or 2am. Liked the video tutorial? Schedule lessons on-demand or schedule weekly tutoring in advance with tutors like Jayson L. Visit https://www.chegg.com/tutors/Accounting-online-tutoring/?utm_source=youtube&utm_medium=video&utm_content=managed&utm_campaign=videotutorials ---------- About Jayson L., Accounting tutor on Chegg Tutors: Western Michigan University, Class of 2013 Accounting major Subjects tutored: Accounting TEACHING EXPERIENCE I've tutored for approximately 4 years, covering a wide range of accounting and finance issues from cost accounting to npv analysis. I'm very logical so my teaching tends to reflect that. In addition, I tend to be more concrete in teaching (rather than abstract), which can help quite a bit when an equation doesn't quite make sense. My goal with tutoring is to lay the problems out simply and quickly so that students understand and remember the processes behind the answers. EXTRACURRICULAR INTERESTS I enjoy biking, hiking, chess, frisbee golf, a little bit of everything. Want to book a private lesson with Jayson L.? Message Jayson L. at https://www.chegg.com/tutors/online-tutors/Jayson-L-2498180/?utm_source=youtube&utm_medium=video&utm_content=managed&utm_campaign=videotutorials ---------- Like what you see? Subscribe to Chegg's Youtube Channel: http://bit.ly/1PwMn3k ---------- Visit Chegg.com for purchasing or renting textbooks, getting homework help, finding an online tutor, applying for scholarships and internships, discovering colleges, and more! https://chegg.com ---------- Want more from Chegg? Follow Chegg on social media: http://instagram.com/chegg http://facebook.com/chegg http://twitter.com/chegg
Views: 1454 Chegg
Go to: http://www.accountingworkbook.com/ to download the problems. Module 6 examines inventory purchases, discounts, returns and allowances. We will cover journal entries for many inventory transactions, and we will learn how to prepare a merchandiser’s financial statements.
Views: 9701 Tony Bell
Free lectures for the ACCA F9 Financial Management To benefit from this lecture, visit opentuition.com to download the free lectures notes used in the lecture and access all our free resources including all F9 lectures, practice tests and Ask the Tutor Forums. http://opentuition.com/acca/f9/ Please go to opentuition to post questions to ACCA F9 Tutor, we do not provide support on youtube. *** Complete list of free ACCA F9 lectures is available on http://opentuition.com/acca/f9/ ***
Views: 8176 OpenTuition
The following video outlines five purchasing and procurement strategies all geared towards lowering vendor prices and or reducing supply chain and inventory management costs. These strategies are put forth from someone who has worked in sales and marketing for 20 years and wanted to combine the best strategies employed by the best purchasing negotiation teams. In essence, these strategies come from those purchasing and procurement agents I have negotiated with. They include the most successful strategies employed against me. The first includes not tipping your hand and or broadcasting your needs too soon in the negotiation process with a salesperson. Instead, nail down your price and then use your requests, needs and or concession to reduce pricing. For instance, agree upon a final price and then ask for a discount or reduced price for 1) prepaying total or a portion of your purchase, 2) prompt payment incentives like net-10 day terms 1 to 2 percent discount or 3) increasing volumes or committing to long-term supply contracts or orders. The second tip includes avoiding using veiled threats - which are simply threats you have no intention of following through on. When you threaten vendors too much without ever following through on a threat, then you are simply training them not to take your threats seriously. Third, match a high-value concession for a high-value concession. In this case, come up with a list of requests and or "must-haves" as outcomes from the price negotiation. When the salesperson makes a request, make sure you counter with one of your own of equal value. Fourth, when it comes to getting price reductions from a salesperson, you have to sometimes appeal to their better nature. In this case, add a little personal touch to your negotiations. Ask for a price reduction by outlining the pressures and demands that are placed upon you as a purchasing agent. In this case, you have to attain a certain inventory cost structure so ask your salesperson to help you attain that. Finally, keep your vendor honest by constantly going out for competitive bids. Even the best of vendors can become complacent. However, if they know you know as much about pricing in the market as they do, then those vendors will be less likely to take advantage of you.
Views: 103487 Ian Johnson
Comparing interest rates on options to borrow to pay within a discount period versus the annualized interest rate of savings to pay within the discount period. Explains credit terms (2/10 n 30) and shows why taking the discount is usually the companies best financial option.
Views: 417 Cheri Bergeron
Operations and Supply Chain Management by Prof. G. Srinivasan , Department of Management Studies, IIT Madras. For more details on NPTEL visit http://nptel.iitm.ac.in
Views: 48482 nptelhrd
This video demonstrates how to determine the debit and credit for each transaction, and it shows the T accounts being populated. The next video in the series will demonstrate balancing off the T accounts and preparing the Trial Balance.
Views: 3651 Luke Fannon
This video shows the difference between the gross method and the net method of accounting for Sales Discounts. Some companies offer discounts to customers for paying their bill within a specific period of time. It is very common to see, "2/10, n/30" on a bill, which means the customer will receive a 2% discount off the sales price if the bill is paid within 10 days, but if the bill is not paid within 10 days then the entire amount is due within 30 days. A company can account for these sales discounts using either the Gross Method or the Net Method. Under the Net Method, we assume that the customer will receive the discount when we initially record the sale. Thus, we record Sales Revenue and Accounts Receivable as if the customer had taken the discount. If the customer does end up paying early and getting the discount, we simply debit Cash for the amount received and credit Accounts Receivable for the same amount. If, however, the customer does not end up receiving the discount, they will pay more than we initially recorded. We debit Cash for the full balance (without the discount) and credit the receivable. To make the debits and credits balance, we credit an account called "Other Income" or "Sales Discount Forfeited" or "Interest Revenue." Under the Gross Method, we do not assume that the customer will receive the discount when we initially record the sale. Thus, if the customer doesn't receive the discount and pays the full amount, we simply debit Cash for the amount received and credit Accounts Receivable for the corresponding amount. If the customer does end up receiving the discount, however, we debit Cash for the amount received and credit Accounts Receivable. To make the debits and credits balance, we also debit an account called Sales Discounts. Sales Discounts will then be subtracted from Gross Sales on the Income Statement to yield Net Sales. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like Edspira on Facebook, visit https://www.facebook.com/Edspira To sign up for the newsletter, visit http://Edspira.com/register-for-newsletter Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin To follow Michael on Facebook, visit https://www.facebook.com/Prof.Michael.McLaughlin
Views: 11253 Edspira
Ken Boyd is the owner of St. Louis Test Preparation (www.stltest.net). He provides tutoring in accounting and finance to both graduate and undergraduate students, as well as QuickBooks consulting. Ken is the author of Cost Accounting for Dummies (Available in March of 2013). As a former CPA, Auditor, Tax Preparer and College Professor, Boyd brings a wealth of business experience to education.
Views: 21155 AccountingED
Example of the calculation of required purchases to meet budgeting needs. Other videos in this series: Part 1 - Production Budgeting example Part 2 - Production Budgeting and Purchases Budgeting comprehensive example For more accounting/how to eLectures (and accompanying lecture notes), blog and a discount textbook-store visit www.TheAccountingDr.com Please note that videos may require Flash media and may not play on devices without Flash capabilities (i.e. iPad).
Views: 17525 Brian Routh TheAccountingDr
Discussion on the closing and adjusting of merchandising business accounts and inventory shrinkage Other videos in this series: Part 1 - Operating Cycle, Inventory, Purchase Discount Terms Part 2 - Purchase Discounts and Purchase Returns and Allowances Example Part 3 - Selling Inventory Part 5 - Income Statements and Business Evaluation For more accounting/how to eLectures (and accompanying lecture notes), blog and a discount textbook-store visit www.TheAccountingDr.com Please note that videos may require Flash media and may not play on devices without Flash capabilities (i.e. iPad).
Views: 14655 Brian Routh TheAccountingDr
Introduction to Financial Accounting Merchandising Operations (Chapter 5) February 25th, 2013 by Professor Victoria Chiu The main objectives of this lecture is to describe and illustrate merchandising operations & the two main types of inventory systems. We also aim to master how to account for the purchase & sale of inventory using a perpetual system. How to adjust & close the accounts of a merchandising business, as well as preparing merchandisers' financial statements is covered, as well as using the gross profit percentage & inventory turnover to evaluate the health of a business. The operating cycle consists of the company purchasing inventory from the vendor / supplier, & then collects cash by selling the inventory to a customer. Merchandisers are businesses that sell a product to customers. New accounts that they use (that we didn't already cover) include inventory (a current asset account listed on the balance sheet). Inventory is the merchandise that a company holds for sale to customers. Sales revenue and cost of goods sold (type of expense) are also two new accounts we deal with (listed on the income statement). Sales revenue is the retail price of the inventory sold to the customer & cost of goods sold is the cost (to the company) of the inventory sold to the customer. A perpetual inventory system keeps a running computerized record of inventory (thanks to bar codes). A contemporary perpetual inventory system constantly records units purchased & cost amount, the units sold & sales & cost amounts, & the quantity of inventory on hand & its cost. It also better controls inventory due to the fact the inventory & purchasing systems are integrated with accounts receivable & sales. Despite it being computerized, physical counts do occur once every year to double check that the ending inventory listed is the correct amount (since spoilage, theft, & other factors may result in loss of inventory without a sale). The perpetual system is most popular. Bar cods are used by businesses today to streamline many formerly repetitive & labor intensive processes related to inventory. It is used to record sales & cost of goods sold, as well as to update the inventory count. It also updates purchasing & generates purchase orders (replenishes inventory by communicating with the company's purchasing systems). Under the periodic inventory system, goods are counted periodically to determine quantity. Under this system, businesses physically count their inventories periodically to determine the quantities on hand. It is used by small businesses, restaurants, & small retail stores (that lack optical-scanning cash registers). It is normally used for relatively inexpensive goods. However, it is less popular than the perpetual system due to computerized inventory systems being much easier & more convenient to use. When inventory is purchased, the inventory account ( a current asset) is increased with each purchase. The vendor submits an invoice for payment (the seller's request for payment from the buyer). The invoice contains the seller, the purchaser, the date of purchase / shipment, the credit terms, the total amount due, & the due date. It should be noted that the inventory account is also impacted by shipping costs, returned purchased items, & early payment discounts. The journal entry to purchase inventory is simply a debit to the inventory account & a credit to the accounts payable account for the same amount. If purchased with cash rather than with credit, simply credit cash instead of crediting accounts payable. Purchase discounts involve the customer getting a discount for making an early payment within a given period (determined by the seller). For example, the buyer is legible for a 3% discount if the buyer pays for the goods within 15 days. If the buyer does not pay within 15 days, they are responsible for the full amount (within 30 days). The above example would be denoted 3/15, n/30. EOM stands for end of month. Purchase Returns & allowances are also discussed, as well as transportation & freight costs (FOB destination & shipping point). ------QUICK NAVIGATION------ Video begins with overview of learning objectives Operating Cycle: 3:31 Merchandisers: 6:11 Balance Sheet Diff: 10:18 Income Statement Diff: 10:59 Perpetual Inventory System: 12:59 Bar Codes: 16:19 Periodic Inventory System: 17:35 Purchasing Inventory: 20:03 Journal Entry for Purchase of Inventory: 22:53 Purchase Discounts: 24:46 Payment Within Discount Period: 29:53 Purchase Returns and Allowances: 34:23 Journal Entry for Purchase Returns & Allowances: 37:34 Transportation Costs: 40:22 FOB Shipping Point: 45:20 Purchase Discount - Shipping is Added to Invoice: 46:06 FOB Destination: 49:56 Summary of Purchase Returns & Allowances, Discounts, & Transportation Costs: 52:53 Exercise S5-2 - (Analyzing Purchase Transactions - Perpetual Inventory): 55:50 Midterm Review: 1:04:54
Views: 32926 Rutgers Accounting Web
This video discusses the differences between the periodic and perpetual inventory methods. A comprehensive example is provided to illustrate the different journal entries that are used to record inventory purchases, sales, and period-end adjustments under each method. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 104458 Edspira
Learn to journalize buyer/seller entries using the gross, perpetual method. Pay close attention to the differences and how the buyer and seller treat certain aspects of these transactions. If you struggle with journalizing in general, please see our journalizing videos in the accounting cycle series.
Views: 14870 TLC Tutoring
In business, merchandise is bought and sold many times as it passes from the manufacturer through wholesalers and retailers to the final consumer. A bill of sale, or an invoice, is a business document used to keep track of these sales and purchases. From the seller’s point of view, they are sales invoices; from the buyer’s point of view, they are purchase invoices or purchase orders. Invoices are a comprehensive record of a sales transaction. They show what merchandise or services have been sold, to whom, in what quantities, at what price, and under what conditions and terms. They vary in style and format from company to company, but most contain essentially the same information. Invoices are used extensively in business, and it is important to be able to read and understand them. In this presentation, you learn how businesses use invoices and the math applications that relate to them.
Views: 1299 Gregg Learning
This video shows how to account for Sales Returns and Allowances using journal entries. A sales return occurs when a customer returns an item to the company. A sales allowance occurs when the company reduces the price paid by a customer because the customer received defective merchandise. Sales Returns and Allowances are subtracted from Gross Sales on the Income Statement to obtain Net Sales. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like Edspira on Facebook, visit https://www.facebook.com/Edspira To sign up for the newsletter, visit http://Edspira.com/register-for-newsletter Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin To follow Michael on Facebook, visit https://www.facebook.com/Prof.Michael.McLaughlin
Views: 10401 Edspira
Introduction to Financial Accounting Professor Alexander Sannella Lecture 10 0:15 Merchandiser Financial Statements 2:29 Balance Sheet Example Learning Objective 2 6:10 Perpetual vs. Periodic Inventory Systems 8:12 Example 12:14 Pure Periodic System 13:06 Perpetual Inventory Systems 15:03 Summary 18:27 Example 22:16 Purchase Invoice 23:43 Purchase of Inventory: Journal Entries 24:11 Purchase on Credit 26:20 Transportation Costs 26:51 FOB Shipping Point 27:11 FOB Destination 33:58 Journal Entry (FOB Shipping) 35:38 Purchase returns and allowances 37:48 Journal Entry 44:40 Purchase Discounts 46:37 Journal Entry Questions and Explanations 51:29 Question 1 53:45 Question 2 Learning Objective 3 57:25 Sales Invoice 57:48 Recording a Sale 58:14 Summary 58:39 Journal Entry (cash sale) 1:00:28 Journal Entry (credit sale) 1:03:00 Sales Returns (2 entries) 1:04:27 Journal Entries (sales returns) 1:07:30 Sales Allowances (no restocking) 1:09:50 Sales Discounts There are two approaches to accounting for inventory; perpetual inventory accounting and periodic inventory accounting. In the periodic inventory accounting approach, purchases for the period are added to beginning inventory to arrive at an interim total referred to as cost of goods available for sale. At the end of the period, the inventory is physically counted. Subtracting the end-of-period inventory amount from the cost of goods available for sale leads to cost of goods sold. A purely periodic system is unrealistic for a large business. A business cannot wait until the endof the period and a physical count to determine its ending inventory and cost of goods sold (would never make it in time for financial statements). The periodic approach is most appropriate for inexpensive inventory that is sold by small shops that do not have opscan or point-of-sale capability. In a perpetual inventory system, detailed records of the cost of each inventory item are maintained and the cost of each item sold is determined from the records when the sale occurs. Under a perpetual system, inventory accounts are continually updated for acquisitions and sales and the cost of goods sold (to be charged against income) is determined after each sale in real time. Gross profit margins can also be determined at the point of sale in real time. The merchandise inventory is increased for additional costs of purchases, such as freight costs. Freight costs are the costs of transporting the goods to the buyer's place of business. FOB, or "free-on-board" terms will determine which party pays the freight fee. FOB shipping point means that goods are placed free on board the common carrier by the seller, and the BUYER pays the freight costs. FOB destination means that the goods are placed free on board at the buyer's place of business, and the seller pays the freight costs. Freight costs incurred by the seller on outgoing merchandise are an operating expense and are debited to "Freight out" or deliver expense, and cash is credited. Freight-out is classified as an operating expense by the seller and will be discussed with accounting for merchandiser sales. When the purchaser pays the freight, merchandise inventory is debited and cash is credited (freight in). The purchaser may return the merchandise, or choose to keep the merchandise if the supplier is willing to grant an allowance (deduction) from the purchase price. In a perpetual system, two entries must be made for every sale: (1) record the sale and (2) record the reduction of inventory. The sales invoice is the documentation used for recording the sale. Because we are using a perpetual approach to accounting for th e inventory, we will actually be making two entries. The first entry will record the sale and the related receipt of cash or account receivable. The second entry will record the reduction of inventory and the related cost of goods sold for this particular transaction. If we need to accept a sales return, in a perpetual system, we also need to make two entries. The first entry will show the reduction in accounts receivable, with a corresponding entry in sales returns and allowances. The second entry will show the merchandise inventory being restocked, with the returned merchandise with a corresponding entry to reduce the cost of goods sold. Sales returns and allowances is a contra revenue account. To receive additional updates regarding our library please subscribe to our mailing list using the following link: http://rbx.business.rutgers.edu/subscribe.html
Views: 4153 Rutgers Accounting Web
From the free study guides and course manuals at www.my-accounting-tutor.com. Accounting for inventory costing issues and purchases. Part I of two parts.
Views: 26640 Craig Pence
If you’re looking for ways to increase sales, bring in new customers, or even sell slow-moving inventory, consider creating a “Buy X Get Y” discount code for your customers! You can offer Buy X get Y discounts to give customers the incentive to add more items to their cart. Examples of Buy X get Y discounts could be “buy one t-shirt and get the second fifty percent off,” or “buy two tank tops and get the third free.” This discount must be entered manually by the customer at checkout. This means you need to make the customers aware of the discount by promoting it. Looking for more information on BXGY discount codes? Check out this document in our Help Center » https://bit.ly/2DFCfcS For further assistance, contact Shopify Support directly » https://help.shopify.com/en/questions Music by: https://markdanielkerry.com/ --- Subscribe to our channel for more videos on everything you need to know to build your Shopify store and make it a success » https://bit.ly/2KDbKbV Looking for more information on setting up your store? Check out the Shopify Help Center » https://bit.ly/2IZrD73 Connect with us on: • Facebook » https://bit.ly/2IYKqPJ • Twitter » https://bit.ly/2KOXlc4 • Instagram » https://bit.ly/2KXusa8 Launch your own online store by visiting Shopify and starting your free 14-day trial » https://bit.ly/2tZisPc
Views: 2496 Shopify Help Center
best book for practicing OR :http://amzn.to/2rrBX2d Buy from this link and get discount. Happy Practicing. video recorded with: http://amzn.to/2qCAmrm INVENTORY MANAGEMENT : Inventory management is a technique used by various business organisations to have a proper control over there inventory. In simple words we can say that this is a way to maintain there level of stock which is required when there is a need. This technique of inventory management is also used to take a decision regarding the quantity of the order which is to be placed with the supplier. In this video we are going to calculate the following information which is the part of inventory management technique. 1.ECONOMIC ORDER QUANTITY. 2.MINIMUM LEVEL. 3.MAXIMUM LEVEL. 4.RE ORDER LEVEL. "INVENTORY MANAGEMENT BY JOLLY COACHING. INVENTORY MANAGEMENT IN HINDI BY JOLLY COACHING. " "HINDI INVENTORY MANAGEMENT" So i hope this video will help you to solve your numerical problems, if it is really helpful then please like and share it with your friends and also subscribe my channel. Thanks. JOLLY Coaching.
Views: 121795 JOLLY Coaching
This video explains how to compute cost of goods sold and ending inventory using the FIFO (first in, first out) inventory cost assumption. An example is provided to illustrate how FIFO is used to calculate COGS and inventory. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 402114 Edspira
Cost of goods sold Cost of goods sold, sometimes abbreviated as COGS or called "cost of sales". Definitions The cost of goods sold (COGS) is any direct cost related to the production of goods that are sold or the cost of inventory you acquire to sell to consumers. It does not include overhead expenses related to the general operation of the business, such as rent. Cost of goods sold is reported on a company's income statement. Cost of goods sold that measures the direct costs incurred in producing products that were sold during a period. To like us on Facebook, visit https://www.facebook.com/accountingPlusS/ Subscriber: https://www.youtube.com/accountingplus The simplest way to Definition cost of goods sold is the cost of the merchandise that a retailer, distributor, or manufacturer has sold. The cost of goods sold is the cost of the merchandise that a retailer, distributor, or manufacturer has sold. Let me explain this definition, Let say a manufacturer has sold its merchandise to a wholesaler. Then the cost of the inventory for the Manufacturer become a cost of goods sold. But distributor or wholesaler who bought this merchandise. Then cost of the merchandise become a current asset for a wholesaler. When wholesaler will sell this merchandise to a retailer. Then the cost of the inventory for the wholesaler will become a cost of goods sold. This merchandise will become a current asset for the retailer. After understanding the core concept of cost of goods sold. Now we are going to look the nature of cost of goods sold the account. Whether it an asset account or Expense account or Revenue account. The cost of goods sold in an expense account. The cost of goods sold is reported on the income statement and can be considered as an expense of the accounting period. By matching the cost of the goods sold with the revenues from the goods sold, the matching principle of accounting is achieved. The important point in this definition is that when anybody sale its inventory, then cost of the inventory will become a cost of goods sold only. Otherwise, it will remain as a current asset. Cost of goods Sold Formula Cost of goods Sold example We have a lot of formulas to find Cost of goods sold. I will discuss with you one by one. Gross profit is equal to sale less Cost of goods sold. Sometimes, we use this formula to calculate the cost of goods sold. We know that Cost of goods sold is equal to sale less gross profit. Another formula, We use to calculate Cost of goods sold. In this formula, Cost of goods sold is equal to opening inventory plus purchase less purchase returns less purchase discount plus freight-in less ending Inventory. In the statement’s form, we will start with opening inventory plus with purchases and freight-in costs and less purchases returns and purchases discounts. When we will add net purchases with opening inventory the balance amount we will say the cost of goods available for sale. Then we less ending inventory with total and get cost of goods sold amount. After the understanding, the cost of goods sold definition and formulas. Now, I will explain this important concept with the help of examples. Let say a shopkeeper had bought 100 footballs for $30 each. One football player comes and bought 10 footballs for $50 each. If we will calculate the cost of sale (COGS) for Shopkeeper as follows. Sales (10 x 50) Less: Cost of goods sold (10 x 30) Gross profit When Shopkeeper will multiply 10 sales footballs with sale price $50. The shopkeeper will get sales amount $500. When shopkeeper will multiply 10 sale football with football cost $30. He will get the cost of goods sold amount $300. When sales amount $500 less cost of goods sold amount $300. We will get gross profit amount $200. When the shopkeeper sales football to football player then cost the football become an expense and charge to cost of goods sold. The remaining 90 football keep in inventory. We know that inventory is also part of current assets. The current assets are shown on balance sheet only. So, the remaining 90 football cost will show on the balance sheet of the shopkeeper only. Let me explain another example, XYZ a company has Beginning inventory $100,000, New purchases $450,000 and Ending inventory $35,000. Here is how to find the cost of goods sold for XYZ company. In this situation, we will add Beginning inventory $100,000 with New purchases $450,000 and less Ending inventory $35,000. We will get the cost of goods sold amount $515,000. Today, I will explain to you cost of goods sold definition, a core concept of cost of goods sold, and also explain with the help of examples.
Views: 6530 Accountingplus
Inventory Management – Quantity discounts - ACCA Financial Management (FM) *** Complete list of free ACCA FM lectures is available on OpenTuition.com https://opentuition.com/acca/fm/ *** Free lectures for the ACCA Financial Management (FM) Exam To benefit from this lecture, visit opentuition.com/acca to download the notes used in the lecture and access ALL free resources: ACCA lectures, tests and Ask the ACCA Tutor Forums Please go to opentuition to post questions to ACCA Tutor, we do not provide support on youtube.
Views: 1410 OpenTuition
Goods available for sale, ending inventory, cost of goods sold, Last in first out, Merchandising operation, purchase of inventory, FOB shipping, FOB destination, perpetual inventory, periodic, purchase discount, purchased invoice, discount terms, net purchased, freight in, purchase returns, purchase allowances, purchased returns and allowances, Consistency, Disclosure, Materiality, Accounting conservatism, intermediate accounting, cpa exam
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Sales revenues, cost of goods sold, gross profit, CPA exam, sales returns and allowance, sales discount, Merchandising operation, purchase of inventory, FOB shipping, FOB destination, perpetual inventory, periodic, purchase discount, purchased invoice, discount terms, net purchased, freight in, purchase returns, purchase allowances, purchased returns and allowances, FIFO, LIFO
Views: 1639 Farhat's Accounting Lectures
Learn GST Debit Note, Credit Note in Tally Accounting Entries Accounting Entries with Practical Use of Sales Return, Purchase Return with GST Applicable, 1. How to post Entry when bed Quality Goods received by supplier 2. When goods are different quality and do not match with our ordered quantity 3.Less quantity goods received by supplier 4. when higher priced bill made by supplier debit note & credit note entry in tally, many practical problem and their solution explain in this Hindi tutorial. You can learn all about the concept of credit and debit note in tally erp 9. Also Learn How to Post Discount Received and Discount Paid or Allowed Entries with GST in Tally for Beginners. It is Full Step by Step Tally Tutorial in Hindi. Must watch to master in tally accounting practical approach to work smartly. This Tally Hindi Video Tutorial Based on Advance, Professional, expert Tally courses. It is a Part of RSCFA Course. Watch All Videos on GST Accounting in Tally Day by Day – Part-1- Tally New Version for GST |How to Download and Install Tally for GST https://www.youtube.com/watch?v=SrW5yBYDryA Part-2- GST Accounting Entries in Tally https://www.youtube.com/watch?v=ZHm5GIBlaF4 Part-3- Tally ERP9-GST Accounting Entries for Services in Tally https://www.youtube.com/watch?v=zuebaPA4lqU Part-4-GST Accounting Entries for Reverse Charge on Purchase from Unregistered Dealer in https://www.youtube.com/watch?v=p2eWqPfsf_s Part -5- Multiple Tax Rate Items in Single Invoice GST Accounting Tally https://www.youtube.com/watch?v=YYR99HReFx8 Part-6 HSN Code, GSTIN Number,Multiple Tax Rate Items in Invoice https://www.youtube.com/watch?v=Edm1m5oxrig Visit Our Website: http://www.cpitudaipur.com Visit Our Blog: http://cpitudaipur.blogspot.in/ Like Our Facebook Page: http://facebook.com/cpitudr Please Subscribe to Our Channel https://www.youtube.com/channel/UCSMsxXvvi-7XvygtsMWRBOg -~-~~-~~~-~~-~- Please watch: "Tally ERP 9-GST Entries for Manufacture, Production, Raw Material Consuming in Tally Part-9 (Hindi)" https://www.youtube.com/watch?v=_Pfc1IRTL-k -~-~~-~~~-~~-~-
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Discussion of a merchandising company and the income statement; with example on how to calculate cost of goods sold with a t-account. Other videos in this series: Part 1 - Introduction to Financial Accounting Part 2 - Service Company Part 4 - Manufacturing Company Part 5 - Manufacturing Company Costs For more accounting/how to eLectures (and accompanying lecture notes), blog and a discount textbook-store visit www.TheAccountingDr.com Please note that videos may require Flash media and may not play on devices without Flash capabilities (i.e. iPad).
Views: 16575 Brian Routh TheAccountingDr
Download a free Excel template to track inventory for your retail business. https://indzara.com/2017/02/free-retail-inventory-management-template/ A simple and effective way to manage orders and inventory for your retail business. If you are getting started with a retail business where you plan to buy products from your suppliers and then sell them to customers with a margin, then you would need a tool to track your business in an effective way. Why do we need an Inventory and Sales Management tool? 1. What is current inventory level? 2. When to order? 3. Which products to order? 4. Are we profitable? 5. Who are best customers and suppliers? In order to get to this information easily and quickly, we need some kind of software. There are several sophisticated and expensive cloud based software available to manage inventory and sales for retail businesses. For small and medium size businesses, especially when we are starting up, it is important that any software we choose is easy to use, customize and not expensive. This is why I am excited to present a free Excel template as a solution. Features of this template Order Management 3 types of orders (Sale, Purchase, Adjust) Handles product returns Auto-Populate product prices in orders Inventory Management Calculates current inventory of each product Set re-order points and know what to order Finance Handles tax Handles product level and order level discounts Calculates Cost of Goods Sold (COGS) and Profit Data Management Easily access Product, Partner (Customer and Supplier) and Order Lists Maintain history of Product price data Reporting 6 page interactive report of business metrics 12 month trends of key metrics Identify best products and partners Calculates Inventory value Overview of steps Initial Setup Enter Business Information in Settings sheet Enter Product Categories in Settings sheet Enter list of Products in Products sheet Enter current Prices of products in Prices sheet Enter list of customers and suppliers in Partners sheet Creating Orders Enter list of Orders in Order Headers sheet. Enter each order’s details (line items) in Order Details sheet. Viewing business report View summary of business performance in Report sheet Related Videos: Tips about Excel Template https://www.youtube.com/watch?v=bfSOeOnyo_E How to use Excel tables? https://www.youtube.com/watch?v=GcGUJB7fo0c Simple and Effective Excel Templates: http://indzara.com/ Free Excel Templates: http://indzara.com/free-excel-templates/ Premium Excel Templates: http://indzara.com/shop/ Small Business Management Templates: http://indzara.com/small-business-excel-templates/ Free Excel Course: http://indzara.com/useful-excel-for-beginners/ Social: Subscribe to YouTube: http://www.youtube.com/user/theindzara?sub_confirmation=1 Facebook: https://www.facebook.com/theindzara YouTube: https://www.youtube.com/user/theindzara LinkedIn: https://www.linkedin.com/company/indzara Twitter: https://www.youtube.com/user/theindzara -~-~~-~~~-~~-~- Please watch my latest video: "Highlight events, weekends and holidays on calendar in Excel" https://www.youtube.com/watch?v=b0lWFlhAj3k -~-~~-~~~-~~-~-
Views: 95246 Indzara