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Fabm 2
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Rovileen Marcellano
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Bank reconciliation
Fabm 2
24 cards
Cards (44)
Sales
The total amount of
revenue
that the
company
was able to generate from selling products
Contra revenue
Reductions
to sales accounts that are on the debit side, contrary to the normal balance of the
sales
or revenue accounts
Sales
returns
Account
debited
to record returns of customers or
allowances
for such returns
Sales
discount
Discounts given to customers who pay
early
, also known as
cash
discount
Net sales
Sales less Sales returns and Sales
discount
Cost of goods sold
The actual cost of
merchandise
that the company was able to sell during the
year
Beginning
inventory
The amount of inventory at the
beginning
of the accounting period, also the ending inventory from the previous period
Net cost of purchases
Net Purchases
+
Freight In
Net purchases
Purchases - (
Purchase discount
and
purchase returns
)
Purchases
Amount of goods bought during the
current
accounting period
Purchase discount
Account used to record early
payments
by the company to the suppliers of
merchandise
Purchase
returns
Account used to record
merchandise
returned by the company to their
suppliers
Freight in
Transportation costs of
merchandise
purchased by the company
Cost of goods available for sale
Beginning inventory
+
Net cost
of purchases
Ending inventory
Amount of inventory presented in the Statement of Financial Position, the
total cost
of inventory unsold at the
end
of the accounting cycle
Gross profit
Sales
- Cost of
goods
sold
General
and
administrative expenses
Expenses not directly related to the
merchandising
function of the company but necessary for the
business
to operate effectively
Selling expenses
Expenses directly related to the sale and
delivery
of
merchandise
, not including cost of goods sold and contra revenue accounts
Net income
Gross profit
- General and
administrative expenses
- Selling expenses
Net loss
Gross profit
- General and
administrative expenses
- Selling expenses (when result is negative)
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