ACCT 2401 Exam 2 Study Guide | Accounting Review, Key Concepts & Practice Questions

ACCT 2401 Exam 2 Study Guide | Accounting Review, Key Concepts & Practice
Questions


manufacturer - ✔✔a business that produces the physical goods that they sell to their
customers



wholesaler - ✔✔a business that buy goods from manufacturers and resells them to retailers



retailor - ✔✔a business that sells products to the final consumer of the product



customer - ✔✔a person or organization that purchases a product from a business



periodic inventory system - ✔✔an inventory system in which the business does not keep a
continuous record of inventory on hand.

-at the end of the accounting period, a physical count of inventory is taken and used to
determine the cost of ending inventory and the COGS.



perpetual inventory system - ✔✔an inventory system in which the business keeps a
continuous record of inventory on hand and the COGS.



Cash purchases - ✔✔Dr- Inventory

Cr- Cash



Credit purchases - ✔✔Dr- Inventory

Cr- Acct. Payable- XXX



Purchase Returns and allowances - ✔✔Dr- Acct. Payable- XXX

, Cr- Inventory



-may be an unsuitable gift

-decreases inventory & accounts payable



purchase discounts - ✔✔Dr- Acct. Payable- XXX

Cr- Cash & Inventory



-discount for early payment



cash sales - ✔✔Dr. Cash

Cr. Sales Revenue



Dr. COGS

Cr. Inventory



credit sales - ✔✔Dr. Acct. Recievable- XXX

Cr. Sales Revenue



Dr. COGS

Cr. Inventory



sales returns and allowances - ✔✔customer may return unwanted merchandise

-COGS decr. & Inventory incr.



sales returns - ✔✔Dr. Sales Returns & Allowances