The operating cycle of a merchandising company ordinarily is shorter than that of a service company.
Under a perpetual inventory system, the cost of goods sold is determined each time a sale occurs.
Freight costs incurred by the seller on outgoing merchandise are an operating expense to the seller.
When using the periodic system the physical inventory count is used to determine
Both the cost of goods sold and the cost of ending inventory
Conway company purchased merchandise inventory with a price of $6000 and credit terms of 2/10, n/30. What is the net cost of the goods if Conway company pays within the discount period?
Sales revenues are usually considered earned when
Goods have been transferred from the seller to the buyer.
Fehr Company sells merchandise on account for $2000 to Kelley Company with credit terms of 2/10, n/30. Kelley Company returns $400 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the discount of the check?
At the beginning of the year, Uptown Athletic had an inventory of $400,000. During the year, the company purchased goods costing $1,600,000. If Uptown Athletic reported ending inventory of $600,000 and sales of $2,000,000, their cost of goods sold and gross profit rate would be
$1,400,000 and 30%