Goods Given as Charity Journal Entry

A business records an bookkeeping entry for goods given to charity. Since the goods are given free of charge they have no sales value and cannot be recorded as sales and therefore the cost of goods needs to be removed from the purchases account and transferred to a charitable expenses account.

Goods Given as Charity Journal Entry November 28th, 2017Team
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Goods Distributed as Free Samples

A business records an accounting entry for free samples given to customers. Since the free promotional samples have no sales value they cannot be recorded as sales and therefore the cost of the samples needs to be removed from the purchases account and transferred to a promotional expenses account.

Goods Distributed as Free Samples November 28th, 2017Team
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EOQ Calculator Excel

This economic order quantity calculator uses the demand for a product together with estimated unit ordering and holding costs to calculate the optimum order quantity necessary to minimize inventory costs. Free Excel download.

EOQ Calculator Excel November 3rd, 2017Team
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Purchase Commitments Accounting

Accounting for purchase commitments involves accruing for potential losses which arise when a business has contracted to purchase goods at a price which is higher than the current market value of the goods.

Purchase Commitments Accounting June 28th, 2017Team
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Carriage Inwards and Carriage Outwards

Carriage inward and carriage outward, sometimes referred to as freight inwards and freight outwards, are transportation costs incurred by a business. Freight inwards relates to costs incurred in having goods delivered to the business from suppliers, whereas freight outwards refers to the costs of delivering goods to customers.

Carriage Inwards and Carriage Outwards November 6th, 2016Team
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Gross Profit Method Calculator

The gross profit method calculator works out a products net price after applying multiple trade discounts to its list price. This free Excel calculator also provides a summary showing the original price, total discount, and net price, together with a calculation of the single equivalent rate (SED).

Gross Profit Method Calculator November 6th, 2016Team
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Effect of Inventory Errors

Errors in inventory impact the balance sheet and income statement of a business, but have no effect on its operating cash flow. In the cash flow the change in net income as a result of the inventory error, is compensated for by a change in the movement on working capital.

Effect of Inventory Errors November 6th, 2016Team
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Goods Received Not Invoiced

A business operating a perpetual inventory system needs to record goods received into inventory even if it has not yet received an invoice from its supplier. Since the liability cannot be posted to the accounts payable account, a temporary posting is made to the goods received not invoiced account.

Goods Received Not Invoiced October 24th, 2017Team
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Ending Work in Process

At the end of an accounting period a manufacturing business will have goods which are only partially completed. These goods will be included in the balance sheet current assets as work in process (WIP), under the heading of inventory. Work in process is sometimes referred to as work in progress.

Ending Work in Process March 10th, 2017Team
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