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 AssetO’ELiabilityRevenueExpense = 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 credit Cash receipts Journal all cash receipts Cash payments Journal---all cash payments General journal

General Ledger Accounts 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 Controlling Account 统制 ( 总分类 ) 账户

Double postings Sales Journal 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 respective 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 allowance when the goods sold out are unsatisfactory Credit memorandum 贷项通知书 Contra-sales account

Merchandize Inventory Sales tax payable AssetO’ELiabilityRevenueExpense = Purchases Sales Purchases R&A - + Sales R&A + - Sales Returns and Allowances

On 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 Allowances On 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 8/5 500 Bal. 2,000 Bal. 1,500 Sales Returns and Allowances After we post these entries, the accounts involved look like this

End of Chapter 5