南京审计学院€¦ · Web view · 2016-10-31南京审计大学. 竞争性谈判采购文件. 采购项目: 公共经济学院软件采购(二次) 采购编号: NSC2016-035
Chapter 6 Purchases and Purchases Journal 采购和采购日记账.
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Transcript of Chapter 6 Purchases and Purchases Journal 采购和采购日记账.
Chapter 6
Purchases and Purchases Journal
采购和采购日记账
Now, let’s talk about
purchase!
Merchandize Inventory Sales tax payable
Asset O’ELiability Revenue Expense= + -+
+ -
purchase Sales
+++ --
-
Purchase R&A
+-
Sales R&A
+ -
Purchase AccountsPurchase Accounts
Purchase Dept Supplier
Receiving Dept
Accounting Dept
DepartmentPurchase requisition Purchase
order
Receivingreport
DeliveryInvoice
verification
Payment
record
Purchase procedures and control
Purchase procedures and control
• Record the purchases of merchandise on account only.
• What is the difference between the sales journal and purchases journal?
• What is the similarity?
Purchases JournalPurchases Journal
Cash Discount/Purchases Discount/Sales Discount
A deduction from the invoice price granted to A deduction from the invoice price granted to induce early payment of the amount due.induce early payment of the amount due.
A deduction from the invoice price granted to A deduction from the invoice price granted to induce early payment of the amount due.induce early payment of the amount due.
Terms
Time
Due
Discount Period
Full amountless discount
Credit Period
Full amount due
Purchase or SalePurchase or Sale
Exh. 6-7
Credit Terms and Cash Discount信贷 / 信用条件 现金折扣
2/10, n/30Read as: “Two ten, net thirty”
When manufacturers and wholesalers sell their products on account, the cre
dit terms are stated in the invoice.
Credit Terms and Cash Discount
Credit Terms and Cash Discount
2/10, n/30Percentage of Discount
# of Days Discount Is Available
Otherwise, the Full
Amount Is Due
# of Days when Full Amount Is
Due
Trade Discount
ExampleExampleJen Co, Inc. offers a 30% tradeJen Co, Inc. offers a 30% trade
discount on orders of 1,000discount on orders of 1,000units or more of their popularunits or more of their popular
product Racer. Each product Racer. Each Racer has a list price of $5.25.Racer has a list price of $5.25.
ExampleExampleJen Co, Inc. offers a 30% tradeJen Co, Inc. offers a 30% trade
discount on orders of 1,000discount on orders of 1,000units or more of their popularunits or more of their popular
product Racer. Each product Racer. Each Racer has a list price of $5.25.Racer has a list price of $5.25.
Used by manufacturers and wholesalers to Used by manufacturers and wholesalers to change selling prices without republishing their change selling prices without republishing their
catalogs.catalogs.
Recording Purchases at Gross Invoice Price(periodic method)
On July 6, Play Clothes purchased $4,000 of merchandise on credit with terms of
2/10, n/30 from Kid’s Clothes.
Prepare the journal entry for Play Clothes.
Recording Purchases at Gross Invoice Price
Purchases are recorded at their gross amounts.
Purchases discounts taken
are recorded when payment is made inside the discount period.
Gross Method
总价法
Recording Purchases at Gross Invoice Price
Recording Purchases at Gross Invoice Price
On July 6, Play Clothes purchased $4,000 of merchandise on credit with terms of
2/10, n/30 from Kid’s Clothes.
Prepare the journal entry for Play Clothes.
Recording Purchases at Gross Invoice Price
Recording Purchases at Gross Invoice Price
On July 15, Play Clothes pays the amount due to Kid’s Clothes.
Prepare the journal entry for Play Clothes.
Recording Purchases at Gross Invoice Price
Recording Purchases at Gross Invoice Price
On July 15, Play Clothes pays the amount due to Kid’s Clothes.
Prepare the journal entry for Play Clothes.
Reduces PurchaseReduces Purchase$4,000 98% =
$3,920
$4,000 98% = $3,920
Purchase Discounts
After we post these entries, the accounts After we post these entries, the accounts involved look like this:involved look like this:
After we post these entries, the accounts After we post these entries, the accounts involved look like this:involved look like this:
Purchase Accounts Payable
7/6 4,000 7/6 4,000
7/15 80
7/15 4,000
Bal. 4,000 Bal. 0
Purchase Discounts Cash
7/15 3920XXXX
Recording Purchases at Gross Invoice Price
Now, assume that Play Clothes waited until July 20 to pay the full amount due to Kid’s
Clothes.
Prepare the journal entry for Play Clothes.
Recording Purchases at Gross Invoice Price
Now, assume that Play Clothes waited until July 20 to pay the full amount due to Kid’s
Clothes.
Prepare the journal entry for Play Clothes.
Slide 6-18
Credit Terms and Cash Discounts
Purchases are recorded at their
net amounts.
Purchase discounts (购货折扣) lost are recorded when payment is made outside the discount peri
od.
Net (price) Method
净价法
Slide 6-19
Credit Terms and Cash Discounts
On July 6, Play Clothes purchased $4,000 of merchandise on credit with terms of
2/10, n/30 from Kid’s Clothes.
Prepare the journal entry for Play Clothes.
Slide 6-20
Credit Terms and Cash Discounts
$4,000 * 98% = $3,920$4,000 * 98% = $3,920
On July 6, Play Clothes purchased $4,000 of merchandise on credit with terms of
2/10, n/30 from Kid’s Clothes.
Prepare the journal entry for Play Clothes.
Slide 6-21
Credit Terms and Cash Discounts
On July 15, Play Clothes pays the net amount due to Kid’s Clothes.
Prepare the journal entry for Play Clothes.
Slide 6-22
Credit Terms and Cash Discounts
On July 15, Play Clothes pays the net amount due to Kid’s Clothes.
Prepare the journal entry for Play Clothes.
Slide 6-23
Credit Terms and Cash Discounts
Now, assume that Play Clothes waited until July 20 to pay the amount due in full to
Kid’s Clothes. Prepare the journal entry for Play Clothes.
Slide 6-24
Credit Terms and Cash Discounts
Nonoperating ExpenseNonoperating Expense
Now, assume that Play Clothes waited until July 20 to pay the amount due in full to
Kid’s Clothes. Prepare the journal entry for Play Clothes.
Managing Discounts
If we fail to take a 2/10, n/30 If we fail to take a 2/10, n/30 discount, is it really expensive?discount, is it really expensive?If we fail to take a 2/10, n/30 If we fail to take a 2/10, n/30 discount, is it really expensive?discount, is it really expensive?
365 days ÷ 20 days × 2% = 36.5% annual rate36.5% annual rate 365 days ÷ 20 days × 2% = 36.5% annual rate36.5% annual rate
Daysin ayear
Daysin ayear
Numberof additionaldays before
payment
Numberof additionaldays before
payment
Percentpaid to keep
money
Percentpaid to keep
money
Exercise
• Lamprino Appliance use periodic inventory system. On June 10,Lamprino purchase 10 televisions from Mitsu Industries on account for a total of $3000. the terms of purchase were 2/10,n/30. On June 20, Lamprino paid the account payable. Prepare the journal entries to record these transaction at :
net price method
Gross method
Double Posting
• Post from the purchases journal to the subsidiary ledger accounts respectively (Account Payable Ledger)
• Post from purchases journal to the controlling account in a summary
(Account Payable account in general ledger)
Purchases Returns and Allowances
Purchases Return . . .Purchases Return . . .
Merchandise returned by the Merchandise returned by the purchaser to the supplier.purchaser to the supplier.
Purchases Allowance . . .Purchases Allowance . . .
A reduction in the cost of defective A reduction in the cost of defective merchandise received by a merchandise received by a purchaser from a supplier.purchaser from a supplier.
Purchases Returns and Allowances
After we post these entries, the accounts After we post these entries, the accounts involved look like this:involved look like this:
After we post these entries, the accounts After we post these entries, the accounts involved look like this:involved look like this:
Purchases Accounts Payable
3/27 48,000
3/27 48,000
3/28 5000
3/30 5000Bal. 48,000
Bal. 43 , 000Purchases Returns and Allowances
Double Posting
• Post from the general journals to the subsidiary accounts respectively (Account Payable Ledger)
• Post from general journals to the controlling account in a summary
(Account Payable account and Purchase R&A in general ledger)
expense
+ -
Purchase
Purchase R&A
Purchase Discount
+
+
-
+-
-
-
-
expense
+
Revenue
Sales
+
Sales R&A
+
+
Sales Discount
+
-
-
The inventory on hand and the cost of goods
sold for the year are not
determined until year-end.
Periodic Inventory System
Specific identification
LIFO
Average cost
FIFO
We use one of these inventory valuation methods in periodic inventory system.
Periodic Inventory System
Cost of Goods Sold
Cost of Goods Sold
Ending InventoryEnding
Inventory
Oldest Costs
Oldest Costs
Recent Costs
Recent Costs
First-In, First-Out Method (FIFO)先进先出法
Cost of Goods Sold
Cost of Goods Sold
Ending InventoryEnding
Inventory
Recent Costs
Recent Costs
Oldest Costs
Oldest Costs
Last-In, First-Out Method (LIFO)后进先出法
Specific Identification具体辨认法
When a unitis sold, the
specific cost of the unit sold is added to cost of goods sold.
Since specific identification is so
easy, can’t we use it all the time?
Not really. Specific identification is hard to use
when we sell a lot of inventory that has lots of
different costs.
Cost of Goods Available for
Sale
Units on hand on the date of
sale÷
Average-Cost Method平均成本法
When a unit is sold,the average cost of each unit
in inventory is assigned to cost
of goods sold.
When a unit is sold,the average cost of each unit
in inventory is assigned to cost
of goods sold.
Inventory Valuation Methods: A SummaryCosts Allocated to:
Valuation Method
Cost of Goods Sold Inventory Comments
Specific Actual cost of Actual cost of units Parallels physical flow identification the units sold remaining Logical method when units
are uniqueMay be misleading for identical units
Average cost Number of units sold times the
Number of units on hand times the
Assigns all units the same average unit cost
average unit cost average unit cost Current costs are averaged in with older costs
First-in, First-out (FIFO)
Cost of earliest purchases on
Cost of most recently
Cost of goods sold is based on older costs
hand prior to the sale
purchased units Inventory valued at current costsMay overstate income during periods of rising prices; may increase income taxes due
Last-in, First-out (LIFO)
Cost of most recently
Cost of earliest purchases
Cost of goods sold shown at recent prices
purchased units (assumed still in inventory)
Inventory shown at old (and perhaps out of date) costsMost conservative method during periods of rising prices; often results in lower income taxes
Once a company has adopted a particular accounting method, it
should follow that method consistently, rather than switch
methods from one year to the next.
The Principle of Consistency一致性 / 一贯性原则
Assignment
• Problem2 on page 236
Continue…… Continue……
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