ACCT 200 Outline of Last Lecture I. TermsII. Multi Step Income StatementIII. Slide 9 ProblemOutline of Current Lecture I. RemindersII. Exam exampleIII. Gross ProfitIV. Homework 4-12V. Homework 4-15VI. Homework 4-20VII. Homework 4-18Current LectureI. Remindersa. Slide 12 on powerpointssales discounts (contra revenue) decreases retained earningsb. Transporting cost to the buyer on FOB shipping point always increases merchandise inventory to the buyerII. Exam examplea. What is merchandise inventory recorded at on the buyer’s balance sheet?Original purchase 2500Inventory returns (500)Purchase discount (40)Ending inventory 1960Paid shipping 75Total 2035 (*this matches the cash the buyer paid)III. Gross Profita. Gross Profit % = Gross Profit/Net SalesIV. Homework 4-12a. Cash up 23500Inventory down (14000)These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.b. A/R up 12000Inventory down (7500)c. A/R up 190000Inventory down (115000)V. Homework 4-15a. 12500b. 12500c. 12500 x .01 = 125d. 12375VI. Homework 4-20a. (8250 x .9) – 950= 6475b. 125 + (2900 x .8) – 400=2045c. 15000 – 800 = 14200d. 400 + (10000 + .8) – 1200 = 7200e. (3850 x .8) = 3080VII. Homework 4-18a. Increase inventory 120000b. Increase accounts payable 120000c. Decrease inventory (16000)d. Decrease accounts payable (16000)e. Decrease cash (96000)f. Decrease accounts payable
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