Communication Dissertation

Accounting Lecture – week 6th (chapter 5)

Chapter 5 – Selling Operations

Transactions for retailer's not service industrial sectors

buy in products on hand (credit or cash)

sell off inventory (credit or cash)

sales returning (credit or cash)

order returns (credit or cash)

delivery costs = shipment out

Spend Supplier Buy Inventory Upon Credit Sell On Credit rating Customer Pays

‘most retailers are authorized for GST'

To work out GST on a value divide the phone number by eleven and without GST on a value add 10%

Two Inventory Systems

1 ) Periodic

2 . Perpetual

Routine Inventory Devices

* is generally used for relatively inexpensive goods

Everlasting Inventory

* keeps a running digital record of inventory

S5. 2 Analyzing purchase deals – everlasting inventory

Suppose Kmart will buy $185, 800 worth of MegoBlock toys and games on credit terms of 2/10, n/30. Some of all the goods are damaged in shipment, so Kmart comes back $18530 with the goods to MegoBlock. All amounts happen to be inclusive of GST.

a. after the discount period

cost sama dengan 185800

earnings = 18530

owing sama dengan 167270

Outdoors Discount = $167270

m. within the low cost period

= $163925 = 98% back button 167270

FOB – free on board

FOB Delivery Point – means the buyer takes possession (title) to the goods with the delivery level FOB Destinations – means the buyer requires ownership (title) to the goods at the delivery destination point Freight In – is definitely the transportation price to deliver the goods in to the purchasers ware house Freight Out – is the transport cost to ship merchandise out of the factory and to the consumer


* products on hand is brought so that it may be sold to buyers * cost of sales (COS) is the cost of inventory which was sold to buyers

* sales returns and allowances and sales settlement discounts decrease the net amount of revenue earned on sales

* sales comes back and allowances and Product sales discounts are contra accounts to Product sales revenue