Kế toán, kiểm toán - Chapter eleven: Introduction to merchandising businesses: Sales

CHAPTER ELEVENINTRODUCTION TO MERCHANDISING BUSINESSES: SALES1. Describe the difference between cash, charge account, and credit card sales.2. Compute sales tax.3. Use credit terms.4. Compute the cash discount and amount of payment due on an invoice.5. Apply the procedure for handling sales returns and allowances. INTRODUCTION TO MERCHANDISING BUSINESSES: SALESObjectives:3Selling at RetailCash SalesCharge SalesCredit Card SalesSales Tax4Selling at WholesaleMost selling at the wholesale level is done on credit through the use of invoices.5Credit TermsCredit terms listed on the invoice tell when the customer must pay for the goods.6Credit Terms2/10, n/30 means:A cash discount of 2% is allowed if paid within 10 days. If not, the balance is due within 30 days.7Sales Returns and AllowancesSometimes a customer will return merchandise or request an allowance. The procedure for handling returns and allowances on credit sales involves the use of a credit memorandum or credit slip listing the details of the credit8Accounting TerminologyAllowanceCash discountCharge accountsCredit cardsCredit memorandumInventoryInvoiceMerchandiseMerchandising businessRetailersSales returns and allowancesSales slipSales taxSource documentsStatement of account Wholesalers9Chapter SummaryA merchandising business earns its revenue by selling merchandise (goods) that it has purchased. Merchandising businesses are usually either wholesalers or retailers.10Chapter Summary (continued)Some retailers sell only for cash, and others sell both for cash and on credit. Charge accounts and credit cards are two common types of credit used in retail stores. Wholesalers make most of their sales on credit.11Chapter Summary (continued)When sales are made, merchandising businesses must record information about them on source documents. Retailers prepare cash register tapes and sales slips. Wholesalers prepare invoices. An invoice is a bill for the merchandise.12Chapter Summary (continued)States, cities, and counties may impose a sales tax. The retailer collects this tax from customers and periodically remits it to the appropriate governmental agency.13Chapter Summary (continued)Wholesalers often include a cash discount in their credit terms to encourage early payment. This discount is deducted from the invoice total if payment is made within a specified number of days.14Chapter Summary (continued)When a customer returns merchandise that was sold on credit or receives an allowance on such merchandise, a credit memorandum, or credit slip, is issued.151. When an invoice reads 2/10 it means that the customers can get a 2% discount if the bill is paid within 10 days.2. N/30 means that the balance is due at the end of thirty days.3. Companies may choose whether or not to charge sales tax.Topic QuizAnswer the following true/false questions:TRUEFALSETRUE16 Investigating on the InternetAs a research assignment, access a business website and report sources of information that might related to merchandising businesses.17(Return to Topic Quiz)3. Companies may choose whether or not to charge sales tax.FALSEIf the state in which the business is operating has a sales tax, then sales taxes must be charged for each transaction.18