Accounting Chapter 19 Terms and Equations

_______ = Sales - Sales Discounts - Sales Returns and Allowances

• Net Sales

• Purchases

• Gross Sales

• Revenue

What is this Calculating:

Cost of Delivered Merchandise = Purchases + Transportation In

Net Purchases = Cost of Delivered Merchandise - Purchase Discounts - Purchase Returns and Allowances

• Cost of Merchandise Available for Sale

• Purchases Available to Buy

• Sales Available to be Delivered

• Purchases Returns and Allowances

______ = Purchases + Transportation In

• Cost of Delivered Merchandise

• Net Purchases

• Purchase Discounts

• Purchases Returns and Allowances

______ = Cost of Delivered Merchandise - Purchases Discounts - Purchases Returns and Allowances

• Net Purchases

• Cost of Delivered Merchandise

• Purchase Discounts

• Net Income

______ = Beginning Inventory + Net Purchases

• Cost of Merchandise Available

• Goods

• Purchases

• Net Loss

________ = Cost of Goods Available to Sell - Ending Inventory

• Beginning Inventory

• Cost of Merchandise Sold

• Income

• Liabilities

________ = Net Sales - Costs of Goods Sold

• Costs of Goods Sold

• Gross Profit on Sales

• Net Profit on Sales

• Availability

________ = Selling Expense + Administrative Expense

• Operating Expense

• Selling Assets

• Administrative Asset

• Net Loss

Gross Profit on Sales - Operating Expense = ______

• Operating Sales

• Operating Income

• Operating Sales

• Operating Loss

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