Перевод английских текстов различной тематики (стр. 14 из 19)
The accountant uses the balance of the Purchases Discounts account to compute the net cost of the purchases for the period. However, published financial statements usually do not include this calculation because it is useful only for managers.
A Cash Management Technique. To ensure that discounts are not missed, most companies set up a system to pay all invoices within the discount period. Furthermore, careful cash management ensures that no invoice is paid until the last day of the discount period. A helpful technique for reaching both of these goals files every invoice in such a way that it automatically comes up for payment on the last day of its discount period. For example, a simple manual system uses 31 folders, one for each day in the month. After an invoice is recorded in the journal, it is placed in the file folder for the last day of its – discount period. Thus, if the last day of an invoice’s discount period is November 12, it is filed in folder number 12. Then, the invoice and any other invoices in the same folder are removed and paid on November 12. Computerized systems can accomplish the same result by using a code that identifies the last date in the discount period. When that date is reached, the computer automatically provides a reminder that the account should be paid.
Trade Discounts. Cash discounts represent real reductions below the original negotiated prices for merchandise. Thus, they differ from trade discounts offered by sellers in the process of negotiating the selling price. Trade discounts are offered as a percentage reduction in the list price of the goods. Because the list price is only the starting point in setting the final price for the goods, it is not recorded in the buyer’s accounting records as their cost. (Similarly, the seller records the net price as the amount of the sale.) For example, if Meg’s Mart purchased items with a $1,200 list price, net of a 25% trade discount, the purchase would be recorded as its negotiated price of $900 [$1,200 – (25% x $1,200)]. Any cash discounts on this purchase would be based on the $900 price and would be recorded in the Purchases Discounts account.
Purchases Returns and Allowances. Some merchandise received from suppliers is not acceptable and must be returned. In other cases, the purchaser may keep imperfect but marketable merchandise because the supplier grants an allowance against the purchase price.
Even though the seller does not charge the buyer for the returned goods or gives an allowance for imperfect goods, the buyer incurs costs in receiving, inspecting, identifying, and possibly returning defective merchandise. The occurrence of these costs can be signaled to the manager by recording the cost of the returned merchandise or the seller’s allowance in a separate contra-purchases account called Purchases Returns and Allowances. For example, this journal entry is recorded on November 14 when Meg’s Mart returns defective merchandise for a $265 refund of the original purchase price:
Nov. 14 Accounts Payable ……………………………265.00
Purchases Returns and Allowances………….265.00
Returned defective merchandise
As we described for Purchases Discounts, the accountant uses the balance of the Purchases Returns and Allowances account to compute the net cost of goods purchased during the period. However, published financial statements generally do not include this information because it is useful only for managers.
Discounts and Returned Merchandise. If part of a shipment of goods is returned within the discount period, the buyer can take the discount only on the remaining balance of the invoice. For example, suppose that Meg’s Mart is offered a 2% cash discount on $5,000 of merchandise. Two days later, the company returns $800 of the goods before the invoice is paid. When the $4,200 balance is paid within the discount period, Meg’s Mart can take the 2% discount only on that amount. Specifically, the company can deduct only an $84 discount (2% x $4,200).
Transportation Costs. Depending on the terms negotiated with its suppliers, a company may be responsible for paying the shipping costs for transporting the acquired goods to its own place of business. Because these costs are part of the sacrifice of making the goods ready for sale, generally accepted accounting principles require them to be added to the cost of the purchased goods.
The freight charges could be recorded with a debit to the Purchases account. However, more complete information about these costs is provided to management if they are debited to a special supplemental account called Transportation-In. The accountant adds this account’s balance to the net purchase price of the acquired goods to find the total cost of goods purchased.
The use of this account is demonstrated by the following entry, which records a $75 freight charge for incoming merchandise:
Nov. 24 Transportation-In …………………………….75.00
Cash ……………………………………….. 75.00
Paid freight charges on purchased merchandise
Because detailed information about freight charges is relevant only for managers, it is seldom found in external financial statements.
Freight paid to bring purchased goods into the inventory is accounted for separately from freight paid on goods sent to customers. The shipping cost of incoming goods is included in the cost of goods sold, while the shipping cost for outgoing goods is a selling expense.
ILLUSTRATION3 Identifying Ownership Responsibilities and RisksFOB Shipping Point
Buyer accepts ownership when the goods leave the seller’s place of business; buyer has responsibility for the shipping costs and faces the risk of loss in transit. 
| Buyer (destination) |
 |
 |
Debits the account payable Credits the account
to the seller for $100 and sends receivable from
the debit memorandum the buyer for $100
Situation — the seller agrees to give a $250 allowance to the buyer for defective goods
Debits the account payable Credits the account receivable
to the seller for $250 from the buyer for $250
and sends the credit memorandum
The debit memorandum in Illustration 4 is based on a case in which buyer initially records an invoice as an account payable and later discovers anerror by the seller that overstated the total bill by $100. The buyer corrects the balance of its liability and formally notifies the seller of the mistake with debit memorandum reading: “We have debited your account for $100 because of an error.” Additional information is also provided about the invoice, its date, and the nature of the error. The buyer sends a debit memorandum because the correction debits the account payable to reduce its balance. The buyer’s debit to the payable is offset by a credit to the Purchases асcount.
When the seller receives its copy of the debit memorandum, it records a credit to the buyer’s account receivable to reduce its balance. An equal debit recorded in the Sales account. Neither company uses a contra account because the adjustment was created by an error.
In other situations, an adjustment can be made only after negotiations between the buyer and the seller. For example, suppose that a buyer claims that some merchandise does not meet specifications. The amount of the allowance to be given by the seller can be determined only after discussion. Assume that a buyer accepts delivery of merchandise and records the transaction with a $750 debit to the Purchases account and an equal credit to Accounts Payable. Later, the buyer discovers that some of the merchandise is flawed, andcan be sold only if it is marked down substantially. After a phone call and brief negotiations, the seller agrees to grant a $250 allowance against the original purchase price.
The seller records the allowance with a debit to the Sales Returns and Allowances contra account and a credit to Accounts Receivable. Then, the seller formally notifies the buyer of the allowance with a credit memorandum. A credit memorandum is used because the adjustment credited the receivable reduce its balance. When the buyer receives the credit memorandum, it debits Accounts Payable and credits Purchases Returns and Allowances. Contra accounts provide both companies’ managers with useful information about the allowance.
Inventory Shrinkage
Merchandising companies lose merchandise in a variety of ways, including shoplifting and deterioration while an item is on the shelf or in the warehouse. These losses are called shrinkage.
Even though perpetual inventory systems track all goods as they move into and out of the company, they are not able to directly measure shrinkage caused by shoplifting or thefts by employees. However, these systems allow the accountant to measure shrinkage by comparing a physical count with recorded quantities.
Because periodic inventory systems do not identify quantities on hand, they cannot provide direct measures of shrinkage. In fact, all that they can determine is the cost of the goods on hand and the goods that passed out of the inventory. The amount that passed out includes the cost of goods sold, stolen, or destroyed. For example, suppose that shoplifters took merchandise that cost $500. Because the goods were not on hand for a physical count, the ending inventory’s cost is $500 smaller than it would have been. Ultimately, the $500 is included in the cost of the goods sold.
Alternative Income Statement Formats
Within the framework of generally accepted accounting principles, companies have flexibility in selecting a format for their financial statements. In fact, practice shows that many different formats are used. This section of the chapter describes several possible formats that Meg’s Mart could use for its income statement.
illustration5Classified Income Statement for Internal UseMEG’S MART
Income Statement
For Year Ended December 31,19X2
Sales.................................................. $321,000
Less: Sales returns and allowances.... $ 2,000
Sales discounts ….... . . …....4,3006,300
Net sales............................................ $314,700
Cost of goods sold:
Merchandise inventory, December 31,19X1 . .$ 19,000
Purchases ....................................................... $235,800
Less: Purchases returns and allowances …. $1,500
Purchases discounts........................... 4,2005,700
Net purchases.................................... $230,100
Add transportation-in.......................................... 2,300
Cost of goods purchased................... 232,400
Goods available for sale …....................................... $251,400
Merchandise inventory, December 31,19X2 . .21,000
Cost of goods sold............................. 230,400
Gross profit from sales.................... . $ 84,300
Operating expenses:
Selling expenses:
Depreciation expense, store equipment ….$ 3,000
Sales salaries expense........................ 18,500
Rent expense, selling space.............. . 8,100