ACCOUNTING

Detailed records of the cost of each item are maintained, and the cost of each item sold is determined from records when the sale occurs.

Cost of goods sold is determined only at the end of an accounting period.

is a reference to a listing of the summary of all the entries of the transaction in the company’s books

this is the amount of inventory at the beginning of the accounting period. This is also the amount of ending inventory from the previous period.

this account represents the actual cost of merchandise that the company was able to sell during the year

amount of goods bought during the current accounting period

account used to record early payments by the company to the suppliers of merchandise

account used to record merchandise returned by the company to their suppliers.

this account is used to record transportation costs of merchandise purchased by the company.

Sales returns and sales discount are called _________ because it is on the opposite side of the sales account. T