If you have not done so please complete:
- Read 396-417
- Review Questions 1-17 Page 401, Exercise 2-5 Page 402
- Review Questions 1-11 and Exercises 1-2 Page 406
- Read 417-424
- Review Questions 1-15 (pg.424) Exercise 1-2,5 Page 424-427
In addition, please complete the following:
- Read 427-434
- Review Questions 1-16 Page 432
- Exercises 1-5
- Exercise 2 Page 456 (very important)
How do businesses account for goods that are returned?
Discussion: Returns and Allowances and why retailers need to keep track of this information
Additional practice and Review:
Review Questions 1-15 (pg.424) Exercise 1-2,5 Page 424-427
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- Freight In
Questions You Should be Able to Answer:
What are the journal entries to record the purchase and sale of merchandise?
What is the formula to determine the Cost of Goods Sold in a periodic inventory system?
What is the Freight In account?
How is the merchandise inventory shown on both the income statement and balance sheet?
Additional Practice and Review:
Page 402 Exercise 2, 3 and 4
page 406 Exercise 1 and 3
Exercise 1 and 2 pages 406
Discussion: the new accounts: MERCHANDISE, PURCHASES, SALES AND Freight IN
Please review Page 399 in the textbook!
- Additional Practice and Review:
- Read 404-406
- Review Questions 1-11 (page 406)
- Important: Exercise 1-2 (page 407-408)
- Read Pages 396-401
- Complete Review Questions 1-17
- Exercises 2,3,4
- What is a merchandising business?
- How is it different from a service business?
- Wholesaler vs. Retailer
What is inventory?
- Why is it so critical?
Discussion: Two Aspects – BS (Current Asset) and IS (COGS)
Periodic vs. Perpetual inventory systems – The Inventory Cycle
What is COGS? – calculation and using the equation
Additional Review and Practice:
- Read 396-401, 404-406
- Complete Exercise 2-5 Page 402
- Questions 1-17 Page 401