Credit Liabilities Debit Accounts Payable Salaries Payable Notes Payable Interest Payable Unearned Revenue Credit Assets Debit Cash Accounts Receivable Interest Receivable Prepaid Insurance Prepaid Rent Supplies Land Inventory Allowance for Doubtful Accounts contra asset Accounting 221 Exam 1 Review Equity Debit Credit Common Stock Retained Earnings Revenue Debit Service Revenue Interest Revenue Credit Credit Expenses Debit Salaries Expenses Insurance Expenses Advertising Expenses Supplies Expenses Operating Expenses Cost of Goods Sold Transportation In Out Uncollectible Accounts Expense Beginning RE Net Income Dividends Ending RE Beginning Supplies Additions Amount Available for use Ending Balance Usage During the Period Accrual Event happens before the cash is exchanged Deferral Event happens after cash is exchanged Income Statement Statement of Stockholders Equity Revenue Expenses Net Income Beginning CS Plus Issued End CS Beginning RE Plus Net Income Less Dividends Balance Sheet End RE Total S E Assets Liabilities SE Beg Cash Plus RE End cash Closing Entries Statement of Changes in Cash Flow Cash flow from OA Cash flow from IA Cash flow from FA Close salary and expense accounts move funds to RE Current Ratio Current Assets Current Liabilities Return on Assets Net income Total assets Debt to asset Total debt Total Assets Return on Equity Net Income Owners Equity Beginning Inventory Balance Purchases Cost of Goods Available for Sale Cost of Goods Available for Sale End Inventory Cost of Goods Sold Sales Revenue COGS Gross Margin Profit Discounts 2 10 x 30 discount how many days discount is available net amount due in x days Discount Debit Accounts Payable Credit Inventory FOB Shipping Point Buyers pay FOB Destination Seller incurs cost FIFO First In First Out LIFO Last In First Out Gain Loss come from transactions that don t involve normal business Weighted Average Total COGAFS Total Quantity Net Realizable Value A R Allowance for Doubtful Accounts Percentage of Sales Method Percentage of Receivables Method Journal Entry MAKE T ACCOUNTS Dr Uncollectible Accounts Expense x Cr Allowance x Direct Write Off Method Dr Uncollectible Accounts Expense Cr A R Lower of cost or market rule x x Ratios to know Gross Margin Ratio Gross Margin Net Sales Net Income Net Income Net Sales Average Number of Days in Inventory Average Number of Days in Sales