FAR (merchandising)

finance cost - interest

Service Formula

service revenue

- expenses

= profit/loss

merchandising formula

net sales

- cogs/cost of goods sold

= gross profit

- expenses ( operating, selling, administrative)

= net profit

PR - purchase requisition (internal)

PO - Purchase order (external)

RR - Receiving Report

cash

sales

accounts receivable

sales

credit period - ano kapa kadugay pwede ka utang

(n) - period days

(n/30) -

(n/10) -

trade discount
>series - running balance

>lump - gin tingob ( Ex: 20% + 10% = 30% )

cash discount - given for prompt payment

360 (accounting year)

3/15 n/45

(3 - discount rate)

(15 - discount period)

> if you pay before 15 days you will have 3% discount

> you have 45 days to pay

freight cost

> Free on Board (FOB)

FOB - shipping point - buyer is the owner (buyer will shoulder the cost)

FOB - destination - seller is the owner - seller is the owner until received by buyer

freight prepaid - seller ang mabayad

freight collect - buyer

transportation in (only for buyer)

> gina dugang sa purchases (debit)

transportation out - delivery expense (seller only)

> expense immediately (debit)