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Comparing Merchandising Activities with Manufacturing Activities Merchandising Company Purchase inventory in ready-to-sell condition. Manufacturing Company Manufacture inventory and have a longer and more complex operating cycle
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Chapter 5
Sales and Sales Journal
销售和销售日记帐
Comparing Merchandising Activities with Service-type Activities
Merchandising Company
Purchase inventory in ready-to-sell
condition.
Service-type Business
Earn most
of revenue from
rendering
service to customer
Comparing Merchandising Activities with Manufacturing Activities
Merchandising Company
Purchase inventory in ready-to-sell
condition.
Manufacturing Company
Manufacture inventory and have a longer
and more complex
operating cycle
Merchandize Inventory Sales tax payable
Asset O’ELiability Revenue Expense= + -+
+ -
Purchases Sales
+++ --
-
Purchases R&A
+ -
Sales R&A
+ -
Some New Accounts
Special Journals
The journals where specialized types of transactions are recorded.
e.g. Sales Journal ----- sales on credit example on page 114
Sales Tax
Sales tax :Value added tax: A charge on taxable supplies of
goods and services by a taxable person in the course or furtherance of a business.
Excise tax: a tax charged on the production or sales of certain items such as petroleum, alcoholic drinks and tobacco.
Special Journal
Sales Journal ----- sales on credit Purchases Journal ----- purchase on creditCash receipts Journal -------all cash receiptsCash payments Journal---all cash payments
General journal
General Ledger Accounts
General LedgerAccounts Receivable
Date Debit Credit Balance2001
June 1 10,000 10,000 15 3,000 7,000
Although general ledger accounts provide useful information, they do not provide
much of the detailed information needed in the daily business operations.
Who owes us money?
Subsidiary Ledgers 明细分类账 : A Source of Needed Details
Subsidiary LedgerHeather Jacobs
Date Debit Credit Balance2001
June 1 7,000 7,000 15 2,000 5,000
General LedgerAccounts Receivable
Date Debit Credit Balance2001
June 1 10,000 10,000 15 3,000 7,000 Subsidiary Ledger
Jake SparksDate Debit Credit Balance2001
June 1 3,000 3,000 15 1,000 2,000
Controlling Account
统制 (总分类 )账户
Double postings
• Sales Journal Subsidiary LedgerJake Sparks
Date Debit Credit Balance2001
June 1 3,000 3,000
Subsidiary LedgerHeather Jacobs
Date Debit Credit Balance2001
June 15 7,000 7,000 General LedgerAccounts Receivable
Date Debit Credit Balance2001
June 31 10,000 10,000
June31
June 1
June 15
Subsidiary Ledgers• Accounts receivable (subsidiary)ledger 应收账款明细账 -- A list of all the charge customers and their respecti
ve balance• Accounts payable (subsidiary)ledger应付账款明细账 -- A list of all suppliers and their respective balance • Inventory subsidiary ledger 存货明细账 -- Separate account for each type of product in the company’s inventory
Sales Returns and Allowances销售退回折让 Customer can request for returns or allowa
nce when the goods sold out are unsatisfactory
Credit memorandum 贷项通知书 Contra-sales account
Merchandize Inventory Sales tax payable
Asset O’ELiability Revenue Expense= + -+
+ -
Purchases Sales
+++ --
-
Purchases R&A
- +
Sales R&A
+ -
Sales Returns and Allowances
Sales Returns and AllowancesOn August 2, Kid’s Clothes sold $2,000 of merchandise
to Play Clothes on credit . Kid’s Clothes must make the following entries.
Sales Returns and AllowancesOn August 5, Play Clothes returned $500 of
unsatisfactory merchandise to Kid’s Clothes from the August 2 sale.
Kid’s Clothes must make the following entries.
Contra-revenue
Sales Accounts Receivable
8/2 2,000
8/2 2,000
8/5 500
8/5 500Bal. 2,000Bal. 1,500Sales Returns and Allowances
After we post these entries, the After we post these entries, the accounts involved look like thisaccounts involved look like this
End of Chapter 5
