Current Asset s © 2009 Larry M Walt her, under nonexclusive license t o Christ opher J Skousen & Vent us Publishing ApS All m at erial in t his publicat ion is copyright ed, and t he exclusive propert y of Larry M Walt her or his licensors ( all right s reserved) I SBN 978- 87- 7681- 485- Download free eBooks at bookboon.com Contents Current Assets Cont ent s Part Special Issues for Merchants 1.1 1.2 1.3 1.4 1.5 The Merchandising Operation - Sales Sales Sales Returns and Allowances Trade Discounts Credit Cards Cash Discounts 10 10 11 12 12 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 Purchase Considerations for Merchandising Business Merchandise Acquisition Periodic Inventory System Purchase Returns and Allowances Cash Discount Gross Recording of Purchases/Discounts Net Recording of Purchases/Discounts Lost Comparison of Gross vs Net Freight Charges The Calculation of Net Purchases Cost of Goods Sold Detailed Income Statement for Merchandise Operation Closing Entries 15 15 15 16 16 18 18 19 21 24 24 25 27 Alternative Inventory System 29 www.sylvania.com We not reinvent the wheel we reinvent light Fascinating lighting offers an ininite spectrum of possibilities: Innovative technologies and new markets provide both opportunities and challenges An environment in which your expertise is in high demand Enjoy the supportive working atmosphere within our global group and beneit from international career paths Implement sustainable ideas in close cooperation with other specialists and contribute to inluencing our future Come and join us in reinventing light every day Light is OSRAM Click on the ad to read more Download free eBooks at bookboon.com Contents Current Assets 4.1 Income Statement Enhancements Analysis of a Detailed Income Statement 31 33 5.1 5.2 5.3 The Control Structure Internal Control in the Merchandising Environment Internal Control and the Purchasing Cycle Generalizing About Control 35 36 37 37 Part Cash and Highly-Liquid Investments 39 6.1 Cash Composition Cash Equivalents 40 40 7.1 Cash Management Strategies to Enhance Cash Flows 41 41 8.1 8.2 Bank Reconciliation Comprehensive Illustration of Bank Reconciliation Proof of Cash 44 46 50 9.1 9.2 9.3 Petty Cash Replenishment of Petty Cash Cash Short and Over Increasing the Base Fund 52 52 53 54 10 10.1 10.2 Trading Securities An Illustration Rationale for Fair Value Accounting 55 55 56 360° thinking Discover the truth at www.deloitte.ca/careers © Deloitte & Touche LLP and affiliated entities Click on the ad to read more Download free eBooks at bookboon.com ... right s reserved) I SBN 978- 87- 7681- 485- Download free eBooks at bookboon.com Contents Current Assets Cont ent s Part Special Issues for Merchants 1.1 1.2 1.3 1.4 1.5 The Merchandising Operation... day Light is OSRAM Click on the ad to read more Download free eBooks at bookboon.com Contents Current Assets 4.1 Income Statement Enhancements Analysis of a Detailed Income Statement 31 33 5.1 5.2.. .Current Asset s © 2009 Larry M Walt her, under nonexclusive license t o Christ opher J Skousen &