When a sale is made so that inventory is surrendered, the seller reports an expense that has previously been identified as “cost of goods sold” or “cost of sales.” For example, Best Buy reported “cost of goods sold,” for the year ended February 28, 2009, as $34.017 billion. When should cost of goods sold be determined? To illustrate, assume that Rider Inc. begins the current year holding three Model XY-7 bicycles costing $260 each—$780 in total. During the period, another five units of this same model are acquired, again for $260 apiece or $1,300 in total. [1]Eventually, a customer buys seven of these bicycles for her family and friends paying cash of $440 each or $3,080 in total. No further sales are made of this model. At the end of the period, a single bicycle remains (3 + 5 – 7). One is still in stock while seven have been sold. What is the proper method of recording the company’s cost of goods sold? Answer: Perpetual inventory system. The acquisition and subsequent sale of inventory when a perpetual system is in use was demonstrated briefly in an earlier chapter. The accounting records maintain current balances so that officials are cognizant of (a) the amount of merchandise being held and (b) the cost of goods sold for the year to date. These figures are readily available in general ledger T-accounts. In addition, separate subsidiary ledger balances are usually established for the individual items in stock, showing the quantity on hand and its cost. When each sale is made, the applicable cost is reclassified from the inventory account on the balance sheet to cost of goods sold on the income statement. Simultaneously, the corresponding balance in the subsidiary ledger is lowered.
payday loans jacksonville fl
cash loan gold coast
how to get a loan online
payday loans for virginia residents
cash loan Washington
cash title loans arizona
100 payday loan no credit check
payday loans in ct
cash advance san antonio
quick quid loan reviews
low interest personal loan
cash loan columbus ohio
payday loans maple grove mn
online loan rate calculator
documents required for personal loan
payday loans ozark alabama
quick online cash loans for blacklisted
In this example, bicycles had been acquired by Inc. and seven of them, costing $260 each (a total of $1,820), are sold to a customer for $440 apiece or $3,080. When a perpetual system is in use, two journal entries are prepared at the time of this transaction: one for the sale and a second to shift the cost of the inventory from asset to expense.
loan fast
quick loan customer service
fast cash qld
instant loans for bad credit
online payday direct lenders
cash loans milford ohio
pre approved personal loans
online credit check free
payday loans anderson south carolina
cash loan Cleveland
instant online loans no paperwork
no credit check online payday loans
payday loan topeka kansas
cash loans no credit check 5000
payday loan wasilla alaska
personal loans las vegas bad credit
payday loan over the phone
payday loans solon ohio
loans no credit checks
payday loan philadelphia
ace payday loans eugene oregon
arkansas payday loan laws
cash loan Springdale
online fast loans
get cash loan no bank account
get loan online
cash loan new jersey
personal loan companies in chicago
cash advance usa
get a loan online today
cash loans austin tx
bad credit loan lenders not brokers
direct lenders for personal loans

 

Contact

Payday Loans

© 2015 All rights reserved.

Make a website for freeWebnode