- Principles of Accounting
- Analyzing and Recording Transactions
- Adjustments and Financial Statements
- Completion of the Accounting Cycle
- Accounting for a Merchandising Company
- Recording Sales
- Sales Returns and Allowances
- Sales Discounts
- Net Sales
- Inventory Systems
- Recording Purchases
- Purchases Returns and Allowances
- Purchases Discounts
- Net Purchases and the Cost of Goods Purchased
- The Cost of Goods Available for Sale and the Cost of Goods Sold
- Gross Profit
- Financial Statements for a Merchandising Company
- Adjusting the Inventory Account
- Inventory Adjustments on the Work Sheet
- Closing Entries for a Merchandising Company
- The Work Sheet When Closing Entries Update Inventory
- Subsidiary Ledgers and Special Journals
- Cash
- Receivables
- Inventory
- Operating Assets
There are two systems to account for inventory: the perpetual system and the periodic system. With the perpetual system, the inventory account is updated after every inventory purchase or sale. Before computers became widely available, only companies that sold a relatively small number of high‐priced items used this system. Under the periodic system, a careful evaluation of inventory occurs only at the end of each accounting period. At that time, each product available for sale is counted and multiplied by its per unit cost, and the total of all such calculations equals the value of inventory.
- Introduction to Accounting
- Understanding Financial Statements
- The Accounting Equation
- Financial Reporting Objectives
- Generally Accepted Accounting Principles
- Internal Control
- Analyzing Transactions
- T Accounts
- Double‐Entry Bookkeeping
- Journal Entries
- The General Ledger
- The Recording Process Illustrated
- The Trial Balance
- Accrued Revenues
- Accrued Expenses
- Unearned Revenues
- Prepaid Expenses
- Depreciation
- Adjusting Entries
- The Adjustment Process Illustrated
- Financial Statements
- The Work Sheet
- Closing Entries
- The Post‐Closing Trial Balance
- The Accounting Cycle
- Reversing Entries
- Correcting Entries
- Recording Sales
- Sales Returns and Allowances
- Sales Discounts
- Net Sales
- Inventory Systems
- Recording Purchases
- Purchases Returns and Allowances
- Purchases Discounts
- Net Purchases and the Cost of Goods Purchased
- The Cost of Goods Available for Sale and the Cost of Goods Sold
- Gross Profit
- Financial Statements for a Merchandising Company
- Adjusting the Inventory Account
- Inventory Adjustments on the Work Sheet
- Closing Entries for a Merchandising Company
- The Work Sheet When Closing Entries Update Inventory
- Subsidiary Ledgers
- Special Journals
- Cash Controls
- The Petty Cash Fund
- Bank Reconciliation
- Credit Card Sales
- Receivables Defined
- Evaluating Accounts Receivable
- Estimating Bad Debts—Allowance Method
- Factoring Receivables
- Notes Receivable
- Recording Notes Receivable Transactions
- Discounting Notes Receivable
- Determining Inventory Levels
- The Cost of Inventory
- The Valuation of Merchandise
- Inventory Systems: Perpetual or Periodic
- Inventory Subsidiary Ledger Accounts
- Cost Flow Methods
- Inventory Errors and Financial Statements
- Estimating Inventories
- Operating Assets Defined
- The Cost of Property, Plant, Equipment
- Depreciation of Operating Assets
- Repairs and Improvements
- Disposition of Depreciable Assets
- Natural Resources
- Intangible Assets
