Home
Search results “Purchase discounts inventory”
Merchandising: Purchase Discounts, Purchase Returns, Purchase Allowances - Accounting video
 
09:18
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).
Purchase Discount (Net Method Vs Gross Method) Cash Discounts On Inventory Purchases
 
10:02
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: 11190 Allen Mursau
Purchase Discounts and Discount Terms - Ch. 5 Video 2
 
04:32
Discount Terms and journal entries for purchase discounts
Views: 51400 mattfisher64
Perpetual Inventory System and How to Journalize Purchase Entries (FA Tutorial #30)
 
10:29
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: 45031 Notepirate
Module 6, Video 2 - Inventory Discounts and Returns - Problem 6-3A
 
20:45
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: 7726 Tony Bell
Selling Inventory; Sales Returns, Sales Allowances, Sales Discounts - Accounting video
 
04:45
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).
Merchandising Operations: Operating Cycle, Inventory, Purchase Discounts - Accounting video
 
06:05
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).
Accounting for Sales and Purchase Discounts
 
05:12
Credit terms such as 2 10 n 30 and the journal entries to account for discounts under the 2014 revenue recognition changes
Views: 1632 Cheri Bergeron
Sales Discounts - Ch. 5 Video 5
 
04:07
Recording sales discounts on credit sales
Views: 37820 mattfisher64
Purchase Discounts and Discount Terms | Accounting | Chegg Tutors
 
08:48
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: 1331 Chegg
EOQ Quantity Discount
 
05:19
Economic Order Quantity - Quantity Discount Model Please visit my Website: http://eddansereau.com/eoq.html All rights reserved, copyright 2014 by Ed Dansereau
Views: 30609 Ed Dansereau
Mod-04 Lec-11 Inventory -- Models for all quantity and marginal quantity Discount
 
52:24
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: 46923 nptelhrd
Quickbooks 4A: Discounts on Purchases/ Discounts on Invoices
 
11:06
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: 20721 AccountingED
Module 6, Video 1 - Inventory Discounts and Returns
 
08:13
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: 9367 Tony Bell
Inventory Accounting For Purchase Commitments (Liabilities Vs Unrealized Losses)
 
10:27
Accounting for inventory purchase commitments (inventory purchase contract with agreement to buy inventories in advance such as weeks, months, or years), purchaser (buyer) enters into a formal noncancelable purchase contract, contract is "executory" in nature, at the contract date neither party has fullfilled its part of the contract, buyer recognizes no asset or liability at the date of the contract, however the contract details should be discloused in the financial statements, the example detailes the recording and calculations required for the different case senarios (1) where market price greater than contracted price, the excess market price over contract price is a gain contingency and cannot be recognized until realized (disclose as a footnote in Financial Statements), (2) market price less than contracted price, If the buyer expects losses will occur when the purchase is effected, buyer should recognize losses in the period during which such declines in market prices take place (current liability on purchase commitments and unrealized gain or loss on purchase commitments, loss in utility if it has occurred during the period in which the market decline took place), (3) when shipped (delivery) of goods record inventory at cost, accounts payable at contractual amount and reduce the estimated liability on the purchase commitment to balance inventory and payables, and (4) partial recovery of contractual amount based on goods delivered, detailed accounting and calculations by Allen Mursau
Views: 6072 Allen Mursau
Gross vs Net Method of Accounting for Sales Discounts
 
06:11
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: 10028 Edspira
Purchase Returns and Allowances- Ch. 5 Video 3
 
04:19
Recording purchase returns and allowances
Views: 35947 mattfisher64
Merchandising: Closing accounts; Adjusting accounts; Inventory Shrinkage - Accounting video
 
09:12
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).
Double Entry Bookkeeping for purchases, sales, discounts received, bad debts and more. (1 of 2)
 
15:02
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: 3485 Luke Fannon
ACCA F9 Inventory Management - Quantity discounts
 
17:44
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: 7874 OpenTuition
Cost of Goods Sold (COGS) Formula | Calculation | Definition | Example
 
05:18
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: 3725 Accountingplus
How to Account for Sales Returns and Allowances
 
04:41
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: 9062 Edspira
Financial Accounting: Merchandising Operations
 
01:18:57
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: 32133 Rutgers Accounting Web
Accounting - Current Liabilities - Accounts Payable - Purchase Discounts - Severson
 
10:36
See the below link for more resources, including as a list of all of my videos, practice exercises, Excel templates, and study notes. https://www.dropbox.com/s/09hdhag3zieyt08/Severson%20YouTube%20Videos.xlsx?dl=0 This video discusses the topic of current liabilities (i.e. short term.) We discuss the reasons for this classification, what types of liabilities would be classified as such, how to analyze them, and how to handle various calculations and journal entries related to them. This also includes a discussion of accounts payables, and purchase discounts reported under the gross and net methods.
OLD Mrs. Wagers' ACC 101/112 - Ch. 5 Lecture - Purchases, Purchase Discounts, Purchase R&A
 
09:27
Mrs. Wagers' lecture on journal entries to record purchases, purchase discounts, and purchase returns and allowances
Views: 60 Barbara Wagers
Merchandising: Buyer/Seller Journal Entries
 
14:58
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: 12237 TLC Tutoring
Income Statement; Gross Profit Percent; Inventory Turnover - Accounting video
 
07:45
Overview of the single step and multi-step income statements as well as a demonstration of the gross profit percentage and the inventory turnover. Part 1 - Operating Cycle, Inventory, Purchase Discount Terms Part 2 - Purchase Discounts and Purchase Returns and Allowances Example Part 3 - Selling Inventory Part 4 - Adjusting and Closing 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).
Intro to Financial Accounting: Merchandiser Financial Accounting
 
01:15:01
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
500 Sales Discount VS. Purchase Discount
 
05:40
Sales discount journal entry and calculation, sales discount being a discount given by the seller for an early payment of amount due often using terms notation such as 2/10, n/30 meaning there is a 2% discount if paid in 10 days otherwise there is no sales discount and payment is due in 30 days. We record the initial sale without the discount debiting AR and crediting sales. If payment is received in the discounted period we will account for the sales discount at that time by computing the discount and recording a journal entry to debit cash for amount originally due less the discount, crediting AR for the original amount, debiting sales discount for the amount of the discount, the debiting of sales discount reducing net income, sales discount being an income statement account, a contra sales account in that it will be reported on the income statement in the revenue section but the sales discount will be reducing revenue to arrive at net revenue. Why Learn Accounting - Financial Accounting / Managerial Accounting https://youtu.be/uaWDB1YdA1k?list=PL60SIT917rv52SlrB3FFn2WMyZEkj6uBI 101 Double Entry Accounting System Explained - Accounting Equation https://youtu.be/66e9QbrkE4g?list=PL60SIT917rv52SlrB3FFn2WMyZEkj6uBI 101 Cash vs Accrual - Cash Method / Accrual method differenc https://youtu.be/i2O0cexCrqc?list=PL60SIT917rv52SlrB3FFn2WMyZEkj6uBI 101 Revenue Recognition Principle https://youtu.be/M_pauBGz5Jc?list=PL60SIT917rv52SlrB3FFn2WMyZEkj6uBI Double Entry Accounting System Explained - Balance Sheet https://youtu.be/kOItl8E3fNA?list=PL60SIT917rv52SlrB3FFn2WMyZEkj6uBI 101 Income Statement Introduction https://youtu.be/1k11H8icQxc?list=PL60SIT917rv52SlrB3FFn2WMyZEkj6uBI 101 Accounting Objectives - Relevance Reliability Comparability https://youtu.be/mO8tPzFmN8o?list=PL60SIT917rv52SlrB3FFn2WMyZEkj6uBI 101 Transaction Rules - Accounting Equation https://youtu.be/0vy6W_WTO2I?list=PL60SIT917rv52SlrB3FFn2WMyZEkj6uBI 101 Transaction Throught Process / Steps - Accounting Equation https://youtu.be/SlTo3EXDuqU?list=PL60SIT917rv52SlrB3FFn2WMyZEkj6uBI 101 Owner Deposits Cash Transaction Accounting Equation https://youtu.be/lPZoImc88eU?list=PL60SIT917rv52SlrB3FFn2WMyZEkj6uBI 101 Work Completed for Cash Transaction Accounting Equation https://youtu.be/ll5xIHVdrVs?list=PL60SIT917rv52SlrB3FFn2WMyZEkj6uBI 100.110 Pay Employee with Cash Transaction Accounting Equati https://youtu.be/bSa3NuVpkwc?list=PL60SIT917rv52SlrB3FFn2WMyZEkj6uBI 200 Debits & Credits Normal Balance - Double Entry Accounting Sy https://youtu.be/alSWKuWPlxU?list=PL60SIT917rv52SlrB3FFn2WMyZEkj6uBI 200 Debits & Credits - One Rule to Rule Them All https://youtu.be/RL3BFjL1eyE?list=PL60SIT917rv52SlrB3FFn2WMyZEkj6uBI
Introduction to Financial Accounting: Purchasing and Selling Inventory
 
08:01
An explanation by Larry & Trisha on the purchase and sale of inventory. Topics we have fun with include the journal entries from the buyers and sellers perspective.
Views: 4973 Accounteam
Financial Accounting: Merchandising Operations (Part II)
 
01:11:54
Introduction to Financial Accounting Merchandising Operations (Chapter 5) February 27th, 2013 by Professor Victoria Chiu The inventory account is sum of purchased inventory and costs of transportation (freight in / FOB shipping point) less purchase returns / allowances and purchase discounts. Net sales is the sales made to customers less sales returns and allowances and sales discounts. When inventory is sold, two entries are recorded. The first entry involves sales revenue, which is the amount earned from selling the inventory. The amount we record is the retail price of the inventory sold to the customer. The second entry is related to cost of goods sold, which is the cost of the inventory sold to the customers (in other words, how much it cost the company to purchase the inventory from their suppliers). Cost of goods sold is among merchandisers' largest expense. For example, if we sell goods for $500 that cost us $400 to purchase, we would debit cash for $500 and credit sales revenue for $500. We would then debit cost of goods sold for $400 and credit inventory for $400. Sale of inventory issues include sales returns and allowances. Sales returns are when the customer returns goods or refuses services. Sales allowances occur when merchandise is defective or damaged, and the seller gives a reduction in price to the customer. The allowance will reduce the cash to be collected from the customer (i.e. reduces the customer's liability). To record entries for sales returns, debit sales returns / allowances and credit accounts receivable (since you won't be collecting that given amount of cash anymore). The second entry involves debiting inventory and crediting cost of goods sold (you increase your inventory because you are taking back the faulty inventory). To record for sales allowances, only one journal entry is required - a debit to sales returns / allowances and a credit to accounts receivable. The seller does not actually take back the inventory (unlike a sales return) and simply grants the buyer an "allowance" for the damaged goods in transit by reducing the customer's accounts receivable account. To record for sales discounts (where the customer pays within the discount period, leading to a reduction in sales), credit accounts receivable for the full amount and debit sales discount for the amount being discounted. Then, debit cash for the difference between the discount and the original accounts receivable. Regarding transportation costs, under FOB destination, the purchaser only takes official ownership of the inventory when the goods arrive at their facility. The seller pays freight (freight out is the transportation cost to ship goods out of the warehouse and to the customer) - the selling expense is incurred to the seller, which the seller records by debiting delivery expense and crediting cash. The purchaser records nothing in this case. Net sales, cost of goods sold, and gross profit are key elements of profitability. Namely, gross profit and net income are both measures of business success. Gross profit is equal to net sales minus cost of goods sold. Gross profit is the extra money a company receives from the customer over the original cost the company paid to its vendor / supplier to acquire the product. For example, if a company purchases a bunch of bottles for $3 a piece and then sells these bottles to a retailer for $5 a piece, the company has a gross profit of $2 per unit sold. Gross profit must cover the company's operating expenses in order for the company to survive, which is why maintaining a sufficiently high gross profit is vital. Gross profit percentage measures the percentage of the sales that are profit. It is among the most carefully observed measures of profitability. Merchandisers strive to increase the gross profit percentage. Gross profit percentage is measured by dividing gross profit by net sales revenue. It should be noted that inventory is the most important asset for a merchandiser (since it is basically the main source of revenue). Merchandisers use several ratios to evaluate their operations, especially how well a company is managing its various assets. ------QUICK NAVIGATION------ Video begins with review of last class' topics Exercise - (Analyzing Purchase Transactions: Perpetual Inventory): 2:47 Operating Cycle: 13:48 Net Sales: 14:02 Sale of Inventory: 16:18 Accounting for Sales Transactions: 18:51 Sale of Inventory Issues: 25:04 Entry for Sales Returns: 29:04 Entry for Sales Allowances: 32:02 Entry for Sales Discounts: 34:42 Transportation Costs (Freight out): 38:16 Exercise S5-6 - (Journalizing Sales Transactions: Perpetual Inventory): 44:15 Gross Profit / Gross Margin: 1:05:20 Gross Profit Percentage: 1:08:55 To receive additional updates regarding our library please subscribe to our mailing list using the following link: http://rbx.business.rutgers.edu/subscribe.html
Accounting Lecture 07 Part I - Merchandising and Inventory Purchases
 
10:47
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: 26604 Craig Pence
Periodic vs Perpetual Inventory Accounting
 
08:06
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: 97626 Edspira
Accounting Course - Purchase Discounts
 
02:32
http://accountingcorner.org - FREE downloads Learn here accounting basic - purchase discounts
Views: 2256 FreeAccountingTutor
Tally.ERP 9 in Hindi ( Entry of Discount given to Customers - 1 ) Part 65
 
06:01
Tally ERP 9 - Intermediate Level - https://goo.gl/aQrYqj इस वीडियो में आप जानेंगे बिल अमाउंट पर डिस्काउंट देना In this video you will know given discount on bill amount.
Views: 175171 Gyanyagya
Purchases Budget with Example Calculations - Accounting video
 
02:18
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).
Recording Inventory Purchases
 
10:29
Principles of Accounting I, Recording Inventory Purchases, Professor Bruce Fried
Views: 3425 CSMDTube
Financial Accounting:  Merchandise Inventory
 
01:16:38
Introduction to Financial Accounting Merchandise Inventory (Chapter 6) March 11th, 2013 by Professor Victoria Chiu The Professor begins this lecture with a brief overview of the topics she covered in the previous class session. Several basic calculations for ending inventory, cost of goods sold and cost per unit are also shown. Following this, the four primary inventory costing methods are covered in depth (Specific unit, FIFO, LIFO, and Average Cost). ------ The first and most basic method, specific-unit-cost, is self-explanatory ; the unit is recorded at the actual price it was sold at. This method is normally used for unique or expensive items (vehicles, jewelry, etc) as opposed to homogeneous items that are mass produced and sold. It is the least significant of the four for the purpose of this course. ------ The next method covered is First-in, First-out, denoted FIFO. Under this method, the cost of goods sold account records items that were purchased first (in other words, the oldest inventory). The actual / specific physical unit sold doesn't matter here since this method is normally used for generic, identical products. ------ The third method covered is Last-in, First-out, denoted LIFO. This method is the exact opposite of LIFO. The cost of goods sold account, in this case, is based on the items that were purchased last (in other words, the newest inventory). Like FIFO, the actual physical unit sold does not matter here. ------ The final method is the Average Cost method, which involves assigning a new average cost per unit after each purchase. In other word, the cost is somewhat dynamic. When a new batch of inventory is purchased, the cost of inventory is adjusted to take the newly purchased inventory into account. Examples and journal entries of each method are covered as well as how to properly apply each method.. Charts are displayed showing date of purchase, purchased, cost of goods sold, and inventory on hand are used to help further facilitate the understanding of the material. A lengthy, in-depth textbook exercise utilizing all the methods is also performed by the Professor. The Professor then closes the lecture by directly comparing the three significant costing methods (FIFO, LIFO, and Average-cost) and defines the benefits and advantages of using each, and why companies may choose one costing method over another. -----QUICK NAVIGATION----- Video Begins with Brief Recap of Previous Lecture Measuring Inventory Cost : 4:21 Inventory Costing Methods (specific- unit-cost, FIFO, LIFO, average-cost): 5:31 Specific-Unit-Cost: 6:21 First-in, First-out (FIFO) defined: 9:04 FIFO Example: 12:55 First-in, First-Out Journal Entries: 21:39 Last-in, First-out (LIFO) defined: 22:49 LIFO Example: 24:46 Last-in, First Out Journal Entries: 29:49 Average Cost (defined): 31:02 Average Cost Example: 34:28 Average Cost Journal Entries: 42:14 Exercise E6-16 - Inventory Methods: 43:21 Exercise E6-16 Solutions Review (Illustration of Inventory Record): 55:43 Comparing FIFO, LIFO, & Average Cost: 1:11:07 Advantage of Each Method: 1:15:12 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: 18439 Rutgers Accounting Web
Inventory and Cost of Goods Sold | Intermediate Accounting | CPA Exam FAR | Chp 8 p 1
 
37:19
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
GST Accounting Entries Discount Paid/Discount Received/Debit Note/Credit Note Tally.erp9
 
10:11
Learn GST accounting entries of Debit note credit note For Sales return and purchase return in Tally.erp9. Accounting entries in the case of Less quantity goods received by supplier.and higher price bill made by supplier.
Views: 57898 TALLY ONLINE CLASS
B2B Purchasing Negotiation Five Strategies to Reduce Vendor Prices
 
09:28
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: 93573 Ian Johnson
Discount Entries (Percent & Amount) In Same Bill In Tally Release 6.1.1 for GST purpose In Hindi-20
 
06:17
We Will Explain You One By One About Whatever Upgradation Has Been Done In The New Release 6.1.1 Of Tally. In This Video We Are Telling You About The Change In The Calculation Of Discounts. When We Used To Make An Invoice, In Order To Calculate The Discount, There Was An Option To Calculate Percentage Wise Discount Only In A Separate Column And If We Have Given Discount On Different Items, Then The Total Discount Given, Is Not Shown Anywhere In The Bill. Now In Release 6.1.1 We Can Give A Percent Wise Discount As Well As A Amount Based Discount, And If We Have Given Discount On Different Items In The Same Bill, Then How Much Is The Total Discount Is Also Shown. Let Us See In This Video That How This Discount Calculation Will Affect GST. Tally ke naye release 6.1.1 me jo bhi upgradation hua hai unhe hum apko ek ek karke samjhaenge. Is video me hum apko discount ke calculation me jo parivartan hua hai uske bare me bata rahe hain. Pehle jab hum invoice banate the to usme discount calculate karne ke liye separate column me sirf percent wise discount calculate karne ka option aata tha aur yadi humne ek bill me alag alag item me discount diye hain to total discount kitna diya hai, yah kahi show nahi hota tha, kintu ab release 6.1.1 me hum percent wise discount ke sath hi amount based discount bhi de sakte hain tatha yadi humne ek hi bill me alag alag item me discount diye hain to total discount kitna diya hai yah bhi dikhai padta hai. Aaiye is tarah ke discount calculation ka GST per kya prabhav padega wo hum is video me dekhte hain. टैली के नए release 6.1.1 में जो भी upgradation हुआ है उन्हें हम आपको एक एक करके समझायेंगे | इस वीडियो में हम आपको डिस्काउंट के कैलकुलेशन में जो परिवर्तन हुआ है उसके बारे में बता रहे है | पहले जब हम invoice बनाते थे तो उसमे discount calculate करने के लिए saperate column में सिर्फ percent wise discount calculate करने का ऑप्शन आता था और यदि हमने एक बिल में अलग अलग items में डिस्काउंट दिए है तो टोटल डिस्काउंट कितना दिया है यह कही शो नहीं होता था किंतु अब release 6.1.1 में हम percent wise discount के साथ ही amount wise discount भी दे सकते है तथा यदि हमने एक ही बिल में अलग अलग items में डिस्काउंट दिए है तो टोटल डिस्काउंट कितना दिया है यह भी दिखाई पड़ता है | आइये इस तरह के डिस्काउंट कैलकुलेशन का GST पर क्या प्रभाव पड़ेगा वो हम इस वीडियो में देखते है | Quiz: https://goo.gl/forms/Z2me8JEn6DTGUsXF3 Exercise: https://goo.gl/uWp9CF Tally ERP 9 - Basic Level Playlist - https://goo.gl/A6HKEK Tally ERP 9 - Intermediate Level Playlist - https://goo.gl/xSJvYe Tally ERP 9 - Advance Level Playlist - https://goo.gl/kzBDqq Tally ERP 9 - For GST - https://goo.gl/feazX6 Subscribe : https://goo.gl/tm11cl All Playlist : https://goo.gl/Y6wlrR Website :http://www.gyanyagya.info/
Views: 43660 Gyanyagya
Perpetual System Journal Entries for Merchandise Company- Purchases
 
08:40
Perpetual Inventory System Journal Entries for the purchase of inventory, payment of freight-in, and the payment to suppliers.
Views: 5629 MsAccountingTutor
Module 6, Video 5 - Preparing a Merchandiser's Financial Statements - Problem 6-4A Concluded
 
08:16
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: 4175 Tony Bell
Purchase Discounts Comparing choices to borrow to pay early or not
 
04:33
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: 399 Cheri Bergeron
Introduction to Merchandise Inventory (Financial Accounting Tutorial #28)
 
06:51
75% OFF the Full Crash Course on Udemy: http://bit.ly/2oZIdcP So we've kind of hit the midpoint of introduction to financial accounting. For the next few tutorials we'll be look at merchandise inventory as an asset and how to recognize it, report it, measure it and everything. I give a brief overview of merchandise companies and accounts that may be associated with such companies. Also remember that merchandise inventory is always recorded at lower of cost and net realizable value! We will learn about purchasing, selling inventory among other unique transactions like returns, discounts, shipping costs and others. 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: 27187 Notepirate

Free essay oliver twist
Published filipino essay in tagalog
Free essay cheating websites for college
For my grandmother knitting liz lochhead analysis essay
Joan didion essay on santa ana winds youth